J.C. Penney Co. Inc. will cut 2,000 jobs from its struggling catalog business in a move that is expected to save the company $30 million.
The move, announced this morning, is part of an ongoing catalog restructuring.
The Plano, TX, retailer will close its Atlanta catalog-fulfillment center and telemarketing offices in Atlanta and Lenexa, KS, by the end of the second quarter. The savings will be realized in 2004. Penney will take about $40 million in charges, most of which are associated with the closing of the Atlanta facility and the workforce reductions.
Catalog sales fell 23.7% in December, which the company said was in line with expectations. The online business, which is included in the catalog business, reported a 20% increase in November and December. Analysts reportedly predict Penney
