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| Retailers JC Penney and Sears to cut thousands of jobs | |
| (about 1 hour later) | |
| US retailer JC Penney said it plans to cut 2,000 jobs and close 33 stores as part of a cost-cutting exercise aimed at restoring profitability. | US retailer JC Penney said it plans to cut 2,000 jobs and close 33 stores as part of a cost-cutting exercise aimed at restoring profitability. |
| The money-losing department store chain hopes to save $65m (£40m) a year through the restructuring, which is expected to be completed by May. | The money-losing department store chain hopes to save $65m (£40m) a year through the restructuring, which is expected to be completed by May. |
| Meanwhile, Sears is cutting more than 1,600 jobs in Canada and outsourcing some work. | |
| The news comes just days after Sears reported a 7.4% falls in group sales. | |
| JC Penney has not posted a profit for years, and is forecast by analysts to lose over $200m in the current quarter. | JC Penney has not posted a profit for years, and is forecast by analysts to lose over $200m in the current quarter. |
| The stock fell by more than 1% in after-market US trading on Wednesday. | The stock fell by more than 1% in after-market US trading on Wednesday. |
| JC Penney chief executive Mike Ullman called the decision "difficult". | JC Penney chief executive Mike Ullman called the decision "difficult". |
| "As we continue to progress toward long-term profitable growth, it is necessary to re-examine the financial performance of our store portfolio and adjust our national footprint accordingly," he said in a statement. | "As we continue to progress toward long-term profitable growth, it is necessary to re-examine the financial performance of our store portfolio and adjust our national footprint accordingly," he said in a statement. |
| "This important step addresses a strategic priority to improve the profitability of our stores and position JC Penney for future success." | "This important step addresses a strategic priority to improve the profitability of our stores and position JC Penney for future success." |
| Retail therapy | Retail therapy |
| Mr Ullman is also trying to revive JC Penney's fortunes by restoring popular private-label brands and reinstating some sales commissions. | Mr Ullman is also trying to revive JC Penney's fortunes by restoring popular private-label brands and reinstating some sales commissions. |
| The planned job cuts account for about 2% of the Texas-based company's workforce. | The planned job cuts account for about 2% of the Texas-based company's workforce. |
| Many of the store closings will be at regional malls in Midwestern states such as Minnesota. | Many of the store closings will be at regional malls in Midwestern states such as Minnesota. |
| It has been a challenging time for US retailers, some of which have cut profit forecasts as restrained consumer spending impacted sales. | It has been a challenging time for US retailers, some of which have cut profit forecasts as restrained consumer spending impacted sales. |
| JC Penney's announcement follows a similar move by rival Macy's, which said earlier this month that it plans to cut 2,500 jobs and shutter five stores. | JC Penney's announcement follows a similar move by rival Macy's, which said earlier this month that it plans to cut 2,500 jobs and shutter five stores. |