Plano-based J.C. Penney will close 33 underperforming stores and cut 2,000 jobs as part of its turnaround efforts, the retailer announced Wednesday afternoon.
The chain has about 1,100 stores, and said it wants to focus its resources on the highest growth opportunities. The moves will result in annual cost savings of about $65 million, beginning this year.
“As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly,” said CEO Mike Ullman. “While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success.”
The retailer will also bring back sales commissions, according to Bloomberg.