JCPenney has identified 152 stores to close and will reduce its workforce by approximately 1,000 corporate, field management and international positions.
The retailer informed that it is aligning its workforce with its store optimisation strategy and reduced store footprint.
The retailer recently filed for Chapter 11. JCPenney also sources from India and its every step will impact Indian apparel exporters also.
Jill Soltau, CEO of the company, said “Each of these associates has made valuable contributions to the legacy of JCPenney, and we are truly grateful for their service. We are committed to supporting them during this period of transition.”
All these efforts are to ensure a financially flexible company for long-term success and this organisational restructuring will create a smaller, more financially flexible company, and will help ensure JCPenney emerge from both Chapter 11 and the coronavirus pandemic as an even stronger retailer.
The company has said that it will be giving a comprehensive benefits package for its departing associates, including severance for eligible associates, healthcare coverage, outplacement support, compensation for unused paid time off and extended associate discount benefits.
