JCPenney will lay off approximately 1,000 employees and close 152 stores. The U.S. retail giant plans to emerge from Chapter 22 bankruptcy protection and the COVID-19 pandemic as a smaller and more financially nimble company.
In a statement on July 15, JCPenney stated that it would adjust its manpower configuration and reduce the store floor space based on its store optimization strategy.
After JCPenney conducted a comprehensive evaluation of store performance and compliance with the company’s strategic needs, it determined to close 152 stores, and said that the company is continuing to negotiate with landlords.
Related to organizational restructuring, JCPenney will reduce manpower in corporate, field management and international positions.
CEO Jill Soltasdfssdfsu said: Every employee has made valuable contributions to JCPenney, and we are deeply grateful for their service. These decisions are always very difficult, and I want to thank these colleagues for their hard work and dedication. We are committed to providing additional support during this transition period.
The global health and economic crisis caused by the COVID-19 pandemic is forcing retailers to make difficult decisions. For JCPenney, this includes reducing floor space and accelerating store optimization strategies as we implement Plan for Renewal.
Soltasdfssdfsu added that as the retail landscape continues to evolve, JCPenney will continue to make “well-planned strategic options to provide eye-catching merchandise and increase customer traffic.” , provide engaging customer experiences, drive business growth, and build a results-focused culture.”
The company stated that it provides a comprehensive benefits plan for departing employees, including Severance pay for eligible employees, citing the COBRA Act (Consolidated Omnibus Budget Reconciliation Act), provides health insurance, transition service assistance, unused paid leave subsidies and extended employee discount benefits to employees participating in welfare insurance.
JCPenney filed for Chapter 22 bankruptcy protection in May 2020.
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