JCPenney (JCP) to Eliminate Thousands of Positions in Cost-Cutting Effort
JCP Hot Sheet
Overall Analyst Rating:NEUTRAL (
Down)Dividend Yield: 2.3%
Revenue Growth %: +79,849.2%
JCPenney (NYSE: JCP) is scheduled to implement its new pricing strategy soon, as the retailer looks to keep momentum rolling from the holiday 2011 shopping season. But there's still another order of business for CEO Ron Johnson to attack: trimming the fat.
According to the NY Post Monday, Johnson will unveil a new plan to cut thousands of jobs on Wednesday which will be above and beyond the traditional letting-go of seasonal employees. JCPenney held on to temps a little longer than normal in order for them to help with the transition to the new pricing format at many of the stores. All 1,200 locations are expected to be affected by the move, the Post noted.
Further, the Post notes that many employees were given an ultimatum to either move to a different shift, or leave the company. Some employees are said to have been "forced" to leave the company due to inability to work the "oddball" shifts.
JCPenney has come under pressure following the disclosure of positions in the company by hedge fund giant Bill Ackman and Vornado (NYSE: VNO) Chair and Alexander's (NYSE: ALX) CEO Steve Roth, which amounts to two of the largest holdings. The Post said the two are "licking their chops" for more cost-cutting measures.
Shares of JCPenney are indicated for a lower open Monday.
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According to the NY Post Monday, Johnson will unveil a new plan to cut thousands of jobs on Wednesday which will be above and beyond the traditional letting-go of seasonal employees. JCPenney held on to temps a little longer than normal in order for them to help with the transition to the new pricing format at many of the stores. All 1,200 locations are expected to be affected by the move, the Post noted.
Further, the Post notes that many employees were given an ultimatum to either move to a different shift, or leave the company. Some employees are said to have been "forced" to leave the company due to inability to work the "oddball" shifts.
JCPenney has come under pressure following the disclosure of positions in the company by hedge fund giant Bill Ackman and Vornado (NYSE: VNO) Chair and Alexander's (NYSE: ALX) CEO Steve Roth, which amounts to two of the largest holdings. The Post said the two are "licking their chops" for more cost-cutting measures.
Shares of JCPenney are indicated for a lower open Monday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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William Ackman, Hedge FundsComments
lay offs
Just what we need more people out of work have you thought about cutting your opening time no need for stores to be open so late or try opening up later in the morning.And have any of your top ceo's thought about cutting your wages bet not lets just hurt the lower income again.
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JCP layoffs
on Jan 24, 2012 07:40 PMMark as Spam
I'm taking the early retirement package . I didn't want to be forced to do anything, especially after I heard what the choices were that they were offering. Thank goodness! Sure happy I won't be working there much longer.