Originally posted on CBS Dallas / Fort Worth:
PLANO (AP) - J.C. Penney Co. confirmed Friday it’s eliminating an additional 2,200 jobs as the struggling department store chain slashes costs after a year of plunging sales and mounting losses.
According to Joey Thomas, a company spokesman, those being axed work in back-office administration in stores and district offices. He noted that the cuts translate to an average elimination of two positions per store.
The cuts come as Penney lost $4.3 billion in revenue for the year as a strategy launched in early 2012 by CEO Ron Johnson to scale back most sales in favor of everyday prices has failed to resonate with shoppers. The pricing strategy is a key element of Johnson’s bigger plan to reinvent Penney’s business that also includes installing shops filled with hip new brands to replace racks of clothing.