April 5 (Reuters) – J.C. Penney Co Inc said on
Thursday that it will cut about 900 jobs, including roughly 600
at its headquarters, as it trims costs and tries to start
running its 110-year-old business more like a nimble start-up.
The Plano, Texas-based retailer, which has already
overhauled its pricing strategy under new chief executive Ron
Johnson, said it plans to close a customer call center in
Pittsburgh, affecting about 300 employees.
As of late January, Penney had about 159,000 employees,
including part-time workers.
“We are going to operate like a start-up,” said Johnson, a
former Apple Inc and Target Corp executive.
“Often in business, companies must streamline in order to leap
forward.”
Penney is shutting the call center as the number of calls
the company is getting from shoppers has fallen more than 30
percent since the new pricing plan was implemented on Feb. 1, it
said.
The Pittsburgh call center will shut down on July 1, while
centers in Columbus, Ohio, and Milwaukee will remain open.
Thursday’s announcement is part of a plan unveiled in
January, when Penney said it aimed to cut annual expenses by
$900 million by the end of 2013.
At that time, Chief Operating Officer Mike Kramer said
Penney’s reporting structure was bloated and suggested the
company could save $90 million a year with a leaner operation at
its headquarters.
Penney shares were down 1.8 percent at $34.82 in early
afternoon on the New York Stock Exchange.
