NEW YORK – J.C. Penney Co. workers are feeling more pain as the department store chain struggles with a transformation.
More than five months into big changes under its new CEO, Penney announced Tuesday that it’s laying off another round of workers at its headquarters in Plano, Texas. The 350 workers being cut were primarily in finance, technology, product development and sourcing, according to company spokeswoman Kate Coultas.
The latest layoffs mean Penney has slashed its headquarters workforce nearly 30 percent, to 3,100 employees, since spring.
Penney is cutting costs amid the difficult task of turning around its business to make it more nimble. But investors are losing faith in Penney’s strategy, and shares dropped nearly 6 percent Tuesday. The stock has lost half its value since February after initially climbing on optimism about the changes.
The department store is overhauling every aspect of its operations, from a new pricing plan to new brands to how it produces its goods. But the new pricing plan, which cuts hundreds of sales events in favor of everyday pricing, has turned off shoppers used to big discounts.