To right-size its executive ranks with 152 permanent store closings, JCPenney is eliminating approximately 1,000 workers in corporate and field management and international positions.
The benefits package for exiting employees includes severance for eligible associates, outplacement support, compensation for unused paid time off and an extension of employee discounts. JCPenney also will offer a temporary extension of health coverage for those enrolled in the company health plan.
The retailer, which filed for Chapter 11 bankruptcy protection on May 15, previously said that its first wave of store closings would include 154 locations. In its most recent announcement, JCPenney said the decision to close the 152 stores followed “a comprehensive evaluation of store performance and strategic fit for the company.”
JCPenney also noted that negotiations with landlords were ongoing and “productive.” Four disposition firms began store closing sales at 137 units in mid-June.
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JCPenney operated 846 stores prior to its Chapter 11 filing, and is expected to close a total of 242 stores by next year.
“The global health and economic crisis caused by the coronavirus (COVID-19) pandemic has forced retailers to make difficult decisions,” said CEO Jill Soltau in a statement. “For JCPenney, that includes reducing our footprint and accelerating our store optimization strategy while we implement our Plan for Renewal.”
