jcpenney Announces Final Phase Of Home Office Reorganization; Elimination of 350 Positions

J. C. Penney Company, Inc

today announced that the restructuring effort it began in April to create a leaner and more simplified operating structure is now fundamentally complete. "One of the most challenging tasks for any leadership team is to reorganize a company. In April, we began right-sizing our headquarters from a people perspective to align our teams with jcpenney's new business model. The actions taken today mark the final phase of those efforts," said CEO Ron Johnson. "We have simplified processes, removed unnecessary work and reduced layers to help us make better and faster decisions. While difficult, these decisions are in the long-term interests of jcp and our stakeholders." Today's announcement will result in the elimination of approximately 350 positions at jcpenney's headquarters. The savings generated by these actions will contribute to the Company's previously announced expectation to achieve an annual run rate of approximately $900 million in expense savings by the end of 2012, one year ahead of its initial plan.