J.C. Penney layoffs will not affect Georgians

Struggling department-store operator J.C. Penney recently announced it will cut 2,000 jobs and close 33 stores as it tries to get back on the path to profitability.

The stores affected are located in 20 different states across the country, and company officials insist none are planned for closing in Georgia. The stores affected by the cuts are located primarily in shopping malls — not standalone buildings.

The closure of the 33 stores means about 2,000 jobs will be eliminated. For those employees who are not staying with the company, J.C. Penney says they will be offered separation benefits packages.

The news raises concerns that Penney's holiday season sales were not what the company hoped for and that the chain needs to do even more to recover from a turnaround plan that has had disastrous results.

J.C. Penney Co., based in Plano, Texas, said earlier this month said it was pleased with its holiday results but declined to give sales figures, raising worries among Wall Street analysts about how the season actually fared.

The cuts announced earlier this month should save more than $65 million annually. The company will take $26 million in pretax charges in the third quarter and $17 million in future quarters. Penney has 116,000 staffers and operates more than 1,100 stores. All the job cuts are related to the store closings.

Penney is trying to recover from massive losses and plummeting sales drops that occurred under former CEO Ron Johnson, who was ousted in April after being on the job for 17 months. The company then brought back former CEO Mike Ullman.

Penney has since reinstated the frequent sales events that Johnson ditched. It's also restored basic merchandise, particularly store brands like St. John's Bay, which were either phased out or eliminated in a bid to attract younger, more affluent shoppers.



More Business

Business Briefs

Sephora opening inside JC Penney Cosmetics retailer Sephora will be opening a 2,200 square foot location inside the Newnan JC Penney store ... Read More


Shared Wisdom

Why 'Self-Promotion' is not a crime or jerk-worthy

How do you promote yourself and your career without coming off as a pompous jerk? Is it possible to genuinely be interested in the needs of ... Read More


Smallman

How exposed are you to your competition?

Very and always. Right now as you read this someone somewhere in the World is thinking about how to get an order from one of your biggest cu ... Read More


Business People

Powers named Contractor of the Year Elaine Powers of Powers Heating & Air of Peachtree City was recently named 2015 Contractor of the Y ... Read More


No man is an island

“No man is an Island” wrote John Donne and yet too many firms – in particular those of an engineering persuasion and equa ... Read More

Attorney reflects on life of law in downtown Newnan

In life, we often look for those little telltale signs that pop up every so often. For Doug Dreyer, his popped up along the way to a job int ... Read More