JC Penney (NYSE: JCP) will cut 900 jobs at its headquarters, which is about 13% of the total. New CEO Ron Johnson, formerly of Apple (NASDAQ: AAPL) claims this will make the crippled retailer into more of a “start-up”.
Start-ups rarely lay people off, if they are successful. Johnson has decided to alter the way Penney prices most of its merchandise. This will make it easier for shoppers to find deals, he says. Penney’s real problem is that people cannot find deals if they won’t go to stores in the first place. The retailer’s stock is just short of flat this year. Wall St. has reject the new strategy.
Douglas A. McIntyre