J.C. Penney reportedly fired 2,200 employees on Wednesday in the latest series of cuts that follow a year of plunging revenues and massive quarterly losses as the retailer's transformational strategy failed to entice shoppers, according to a report in
The Dallas Morning News.
"Service Leaders," "administrative assistants," and "office/cash room associates" are just some of the positions being cut across the chain's 1,100 stores, according to
Business Insider. The announcement was reportedly made to store managers Tuesday in a "secret broadcast."
The cuts follow the 19,000 layoffs that were instituted this year under CEO Ron Johnson, the former Apple exec who took over J.C. Penney in 2011.
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J.C. Penney, based in Plano, Texas, tried to implement a turnaround strategy this past year that included ditching sales and coupons in favor of everyday low prices, bringing in new designers, and remodeling existing stores, but customers didn’t seem to be interested.
During the fourth quarter that ended Feb. 2, Penney's revenue at stores opened at least a year — a figure the retail industry uses to measure of a store's health — dropped 31.7 percent. That compares with drops of 26.1 percent in the third quarter, 21.7 percent in the second quarter and 19 percent in the first quarter. Analysts had expected a decline of 26.1 percent.
For the year, Penney lost $985 million, or $4.49 per share, compared to a loss of $152 million, or 70 cents a share, in the previous year.
"It's the worst performance I have ever seen by a company in one year," Walter Loeb, an independent retail consultant, told Reuters.
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Reports say J.C. Penney's board is either considering a sale of the company or getting rid of Johnson, according to FOX Business.
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