J.C. Penney cuts 360 jobs, stock slides

PLANO, Texas (AP) —

J.C. Penney announced it will eliminate 130 home office positions and another 230 in a store reorganization bringing the total job cuts to 360. The move will save the struggling retailer between $20-$25 million. Shares dropped on the news.

Ticker	Security	Last	Change	Change %
JCP	NO DATA AVAILABLE	-	-	-

Earlier in the week the company announced it will convert full-time employees to part-time positions as well as hiring more part-timers to allow the retailer to increase employee headcount in its stores with employees during peak weekend hours, as well as hiring more part-timers to allow the retailer to increase employee headcount in its stores with employees during peak weekend hours. Many full-time employees will be cut to 25 hours a week from 35.

"As part of the company’s ongoing efforts to align business operations with long-term strategic priorities, JCPenney is implementing a store staffing model to simplify processes, improve productivity and manage expenses," Joey Thomas, a company spokesperson told FOX Business.

On Friday the retailer posted fourth quarter revenue of $4.03 billion, which was in line with expectations and profits of $254 million, or 81 cents per share. Per-share earnings, adjusted for one-time gains and costs, were 57 cents, which is 12 cents better than Wall Street had expected, according to Zacks Investment Research.

CEO Marvin Ellison told investors 2018 will be a year the retailer ramps up select offerings. "In 2018, we will intensify our market share efforts in appliances, mattresses and furniture, while continuing to take steps to modernize our apparel assortment and omni-channel" he said.

Same-store sales increased 2.6 % for the fourth quarter, slightly below what analysts were expecting and increased just 0.1 % for full year 2017.

 The Associated Press contributed to this report.