The New York Post reports the struggling department store chain might be in for some major layoffs. Citing low cash reserves, sources close to the company indicated that J.C. Penney Co. may lay off about 10 percent of its staff at its Plano, Texas headquarters. There are currently 3,000 people working at the headquarters. The announcement could come as early as next week.
“They wanted to throw the severance costs into this year because last year was already so bad,” according to one former exec. He noted that fourth-quarter sales — scheduled to be released on Feb. 27 — are estimated to have dropped upward of 30 percent amid heavy holiday markdowns.