In an effort to turn around company profits, department-store operator JC Penney said that it will close 33 underperforming stores and lay off about 2,000 employees.
According to USA Today, the company said that closing the said number of stores will save them around $65 million a year from 2014.
JC Penney CEO Myron Ullman III told USA Today, "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."
The turnaround began in April when Ullman returned to the company after the leadership of CEO Ron Johnson proved ineffective as revenue plunged. Penney then reinstated marketing strategies that Johnson forewent during his leadership in the company says the Miami Herald.
Over the last few months, Penney released monthly sales figures showing some improvement. Specifically, stores that have opened for at least a year have increased profits by 0.9 percent in October.
Such improvement is the first positive release since December 2011, according to the Miami Herald. However, the company failed to offer figures regarding their December sales - something that was taken to indicate that sales were not going as well as the company had hoped for.
Among the locations that are targeted to close, according to the Liberty Voice, are Morrow, GA.; West Dundee, Ill.; High Point, NC.; Culpepper, Va.; Des Moines, Iowa, and Duluth, Georgia. The company's catalog business and outlets totaling 19 divisions will also be closing. Finally, the closures will also extend to the company's furniture stores.
Other than that, customer call centers in Michigan and New Mexico are not safe, and will also close as part of the turnaround effort, notes the Liberty Voice.
According to the chairman of JGA retail consultants on a report by USA Today, many retail chains are "eliminating stores in sparsely visited malls" and Penney is one of them.
USA Today indicates that the closings will cut 3% of the Texas-based retailer's 1,100-store empire while 1.7% of its 116,000 employees will be affected by the layoffs.