Penney cuts catalog jobs, ops
Staff -- Home Textiles Today, 1/13/2003 12:00:00 AM
PLANO, TX —
The catalog division of JCPenney will cut 2,000 jobs and close its Atlanta catalog fulfillment and telemarketing centers in both Atlanta and Lenexa, KS, by the end of the second quarter, the company announced Friday.
The move follows a history of double-digit losses for the catalog, including a 23.4 percent fall in December. It will result in a pre-tax charge of $40 million for the 2003.
The cuts are part of a continuing effort — which, so far, has met with limited success — to turn around the catalog. The closings and layoffs are expected to provide annual savings of about $30 million, to be fully realized in 2004. After the closings, JCPenney will have four fulfillment centers and 10 telemarketing sites.
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