After reporting weak Q4 earnings, JCPenney is cutting its workforce in a move that could save the company up to $25 million per year. The retailer is trimming 360 jobs, including 130 positions in its headquarters, CNBC reported.
“Just as we conduct a review of our stores and supply chain operations each year, we continually evaluate the productivity of our home office structure to ensure that it efficiently aligns with the business,” the retailer said in a statement. “Certain positions have been eliminated as a result of this annual assessment.”
Some workers will be moved to customer-facing positions. In its home department, JCPenney will assign staff to lead furniture, mattresses, appliances and window coverings.
The company will also undergo changes in its management team. Therace Risch will take over omnichannel responsibilities from Mike Amend, the current executive vice president of JCPenney’s omnichannel business, and Joe McFarland will assume the role of chief customer officer. Both McFarland and Risch will report to JCPenney CEO Marvin Ellison.
The news comes as other retailers are also laying off staff. Barnes & Noble has let an unspecified number of experienced workers go, including lead cashiers and digital leads. The news came to many workers as they arrived for work on Monday (Feb. 12), according to sources familiar with the matter.
In addition, Walmart will be laying off as many as 1,000 employees at its headquarters this year and in 2019. Bloomberg reported news that between 400 and 500 jobs were cut in marketing, human resources, merchandising, real estate and other departments this week. Those employees have 60 days to find new positions.
According to Walmart CEO Doug McMillon, the cutbacks should help the retailer better compete with Amazon. He explained the company “is not where [it wants] to be” as far as reducing expenses. The next round of layoffs will occur next year as buildings are consolidated in anticipation of Walmart’s new corporate headquarters.