Months after declaring bankruptcy, JCPenney announced on Wednesday that it will close 152 stores and will cut 1,000 jobs.
The retail giant has reported plunging sales in recent years, and NBC News reports that JCPenney’s revenue has dropped by more than 40 percent since 2007.
International roles, field management, and corporate positions will be most affected by the planned layoffs, with eligible employees receiving a severance package.
“Each of these associates has made valuable contributions to the legacy of JCPenney, and we are truly grateful for their service,” said Jill Soltau, chief executive officer of JCPenney, in a press release. “These decisions are always extremely difficult, and I would like to thank these associates for their hard work and dedication. We are committed to supporting them during this period of transition.”
In May, the Plano, Texas-based retailer filed for Chapter 11 protection in federal bankruptcy court for the Southern District of Texas after furloughing associates in supply chain and logistics centers in March and many of its store hourly associates in April.
The company, which prior to its bankruptcy operated 850 stores in the United States and Puerto Rico, placed part of the blame on the coronavirus pandemic.
According to CNN, in May Solteau said that "until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy -- and our efforts had already begun to pay off.”
In June, the company announced that it would be closing over 150 stores due to the coronavirus pandemic.