NEW YORK — Two months into J.C. Penney’s transformation, its workers are starting to feel the pain.
The midpriced department store chain said Thursday that it has laid off 600 workers, or 13 percent of the staff at its headquarters in Plano, Texas, as the company looks to streamline its operations amid a major renovation of the business.
Penney also will eliminate 300 more jobs at its customer call center in Pittsburgh when it closes the center July 1.
The moves come as the company’s new CEO, former Apple Inc. executive Ron Johnson, is transforming every aspect of Penney’s business, from pulling back on constant promotions to rethinking the brands it carries.
“We are going to operate like a start-up,” said Mr. Johnson in a statement issued Thursday that didn’t cite specific job cuts. “We are going to be nimble, quick to learn, quicker to react and totally committed to realizing our vision to become America’s favorite store.”
Mr. Johnson, who became CEO on Nov. 1, said the cuts involved “some very difficult decisions” but were essential for the business.
The company had hinted that layoffs would come when it told investors in late January that it planned to reduce layers of management at its headquarters. The company had said then it was targeting $900 million in expense cuts to be completed over the first two years of its transformation. That included $200 million in savings from its corporate headquarters as well as $400 million in cost savings in store operations and $300 million in advertising savings.
Google to nix e-book sales via independent stores
MOUNTAIN VIEW —Google is ending a program that allowed independent booksellers to offer e-books from its online store.
In a blog posting Thursday, Google digital publishing director Scott Dougall wrote that the program hadn’t “gained the traction” the company was hoping for. Beginning Jan. 31, the search engine giant will sell e-books only through Google Play.
Publishers and booksellers had hoped that Google’s e-book store would cut into Amazon.com’s lead in the digital market. Some complained that the Mountain View, Calif.-based Google Inc. was reluctant to promote the service, which launched in 2010.
The CEO of the trade group the American Booksellers Association told store members in an email that the association was “very disappointed” by Google’s decision. But Oren Teicher says they “have every confidence” a new outlet will be found.
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