JCPenney‘s future is looking grim. The CEO of the well-known department store, Ron Johnson, is trying to turn things around by cutting costs and this has many employees worried. This month 300 employees are being laid off including employees in legal, HR, and IT. These firings are a part of their transformation and it is likely to happen in waves as time goes on. It has been reported that another 10% of JCPenney headquarters staff will be laid off.
Their stock price has plummeted 46% since last year and their store sales are not looking too good either. Even though this is the case, Ron Johnson is following through with his “shop” concept where the retail stores are separated by different shops including Levi’s, Sephora, and Liz Claiborne. This concept looks promising as the “shops” are bringing in “20% higher comps than the rest of the store”.
Rumors are plaguing the store and employees are constantly worrying who will be next to get cut. Also, communication among employees is something that has taken a hit. Employees are not being told about significant firings and details about the company and its future are coming across vague. Hopefully, Johnson will be able to turn the store around and put employees’ minds at ease. (businessinsider.com)