A number of employees have been laid off at J.C. Penney’s corporate headquarters in Plano, Texas. The company confirmed that they had made these layoffs, but they did not give specific details as to how many were laid off or for what reason. The company did say that they would provide more information when they released their earnings report later today (March 2nd, 2018).
The company gave a very boiler plate type of response as to why they were making the cuts for the time being says dallasnews.com. They talked about how they constantly review their branches for performance and do the same when it comes to their corporate headquarters. They talked about wanting to have as effective of a business as possible. They say that certain positions were eliminated as a result of their annual review of performance. However, others see this as little more than the company putting up excuses for a crumbling business that they don’t want to admit has failed.
Retail is under siege all around. Online retailers like Amazon have swooped in and taken advantage of so many things that the traditional retailers cannot possibly deal with. They have lower overhead, better marketing, and more products. It has meant that traditional retailers have had to adapt quickly or else fade away. J.C. Penney has not done a good job with keeping up with the times.
As a farther sign of this, the company also announced that it would be closing eight of their stores and a warehouse up in Wisconsin. In total, more than one-thousand employees are impacted by those closings. It is yet another indication that the store is headed in the wrong direction.
Some of the sales numbers have not been as bad as some might have expected. However, the earnings are simply not there. The translation between higher sales and a bigger pile of earnings when it is all said and done has not matched up for J.C. Penney.
They are not the only retailer that is struggling in this environment. There are similar problems at places like Sears. They too have had to face the harsh reality of battling with Amazon and other online retailers. When they failed to come to their senses and adapt well enough, they also suffered greatly. Therefore, you should expect to see a lot more stores about issues at these retailers in the near future than you might have in years gone by.