Plano-based JCPenney Co. announced plans to furlough more than half of its hourly workforce in a series of cost-saving moves driven by loss of revenue related to the coronavirus.
The struggling retail giant announced the furloughs March 31 as it laid out a plan that included a an extension of existing store closures. The furloughs would also include a number of employees at the company’s corporate headquarters in Plano.
“We remain optimistic about JCPenney’s ability to weather this pandemic,” CEO Jill Soltau said in a statement. “We also believe these short-term solutions will have a long-term benefit for our associates, customers, and key stakeholders as we look forward to the day that we reopen our doors.”
Before the coronavirus caused a widespread series of retail store closures across the U.S., the company had already been struggling to return to profitability. The day before announcing the furloughs, the company said in financial filings that the economic environment caused by coronavirus fears could lead to measures such as these and negatively affect its ability to reach its long-term financial goals.
“Our ability to achieve profitable growth is subject to both the risks affecting our business generally and the inherent difficulties associated with implementing our strategic plan,” the company said in a March 30 financial filing.
Plano-based JCPenney furloughs more than half of hourly workforce, some corporate office employees
J.C. Penney announced March 31 that many of its employees would be furloughed in a series of cost-saving efforts. (Daniel Houston/Community Impact Newspaper)