JCPenney to Cut 2,000 Jobs, Close 33 Stores
Struggling department store J.C. Penney on Wednesday said it will close 33 underperforming stores and slash 2,000 jobs, in a measure it says will generate annual savings of approximately $65 million.
Penney shares fell 0.9 percent to $6.95 in after-hours trading.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," CEO Myron Ullman said in a news release.
The announcement comes one week after analysts expressed concerns to CNBC about the company's slow-coming turnaround. In its most recent sales update, issued last week, the company said it was "pleased with its performance for the holiday period, showing continued progress in its turnaround efforts."
But analysts likely wanted to hear more about those turnaround efforts--including the size of the same-store sales gain--and Penney shares sold off briskly.
(Click here to download a PDF of the complete list of store closures.)