July 10 J.C. Penney Co Inc announced
another 350 job cuts at its Plano, Texas headquarters,
completing a reorganization of its home office designed to help
it bring costs in line with those of rivals.
The department store chain, which is involved in a radical
transformation including a new pricing strategy and the
remodeling of its fleet of 1,100 stores, said the cuts will
contribute to its previously announced plan to reduce costs by
$900 million a year by the end of 2012.
The Plano, Texas-based retailer said in April it would lay
off 600 workers at its headquarters. As of Jan. 28, 2012, the
company had 159,000 employees.
Penney's transformation, which includes the discontinuation
of coupons and most sales events, has gotten off to a poor
start: Penney's same-store sales fell 18.9 percent in its first
quarter, when it also had an unexpected net loss.
When Penney announced its turnaround plan in January, it
estimated it could save $200 million a year in costs with a
leaner home office.
In a company presentation in January, Penney said that in
2010, selling, general and administrative expenses were equal to
31 percent of revenue, compared with 21 percent at rival Kohl's