J. C. Penney (JCP) to Reorganize Workforce at Plano, TX HQ, Close Pittsburg, PA Call Center
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Price: $18.01 -4.15%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: -16.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: -16.3%
Trade JCP Now!
J. C. Penney Company, Inc. (NYSE: JCP) today announced that it has begun to dramatically simplify its business model in order to align operations with the changes it is making to become America's favorite store. The Company's new approach to pricing, promotion, merchandising and the customer experience requires a more competitive operational structure, with fewer layers of management, wider spans of control and greater accountability throughout the organization.
To begin putting this framework in place, the Company is reorganizing the workforce at its headquarters in Plano, Texas, where it will be taking a range of actions to realign its management structure.
Today's announcement is part of the Company's plan, announced on Jan. 26, to reduce annual expenses by $900 million by the end of 2013. This includes $200 million in savings from its corporate headquarters, as well as $400 million in cost savings in store operations and $300 million in advertising expense savings. The changes are expected to reduce expenses to below 30 percent of sales by the end of 2013 and position the Company to achieve an expense run rate of 27 percent by the completion of its transformation in 2015. The Company also announced that it plans to close its customer call center in Pittsburgh, Pa.
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To begin putting this framework in place, the Company is reorganizing the workforce at its headquarters in Plano, Texas, where it will be taking a range of actions to realign its management structure.
Today's announcement is part of the Company's plan, announced on Jan. 26, to reduce annual expenses by $900 million by the end of 2013. This includes $200 million in savings from its corporate headquarters, as well as $400 million in cost savings in store operations and $300 million in advertising expense savings. The changes are expected to reduce expenses to below 30 percent of sales by the end of 2013 and position the Company to achieve an expense run rate of 27 percent by the completion of its transformation in 2015. The Company also announced that it plans to close its customer call center in Pittsburgh, Pa.
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