What:  JC Penney underwent a reduction of 20% of stores and 40% of associates following its purchase by SPG and Brookfield Asset Management

Why it is important:  The company is aiming at a new leaner model, focusing on flexibility, outsourcing, to make the most of a renewed and refreshed fashion and home offer.

JC Penney went into bankruptcy in May 2020 and by then, operated 846 stores across the country with 84,000 associates, before being acquired by Simon Property Group and Brookfield Asset Management.

Since then, 174 stores have been closed (20%) and 34,000 associates were made redundant (40%). The remaining teams are either working from home or in leased spaces, as the HQ has been given up, and some functions such as IT support are being moved abroad.

The strategy is to be leaner and more flexible, in order to attract again the customer base via a new fashion and home brand offer.

JC Penney cuts jobs