Dive Summary:
- Departing J.C. Penney CEO Ron Johnson's stay at the company saw thousands of employees layoffs, prioritizing upscale offerings over store brands, but the company may look to reverse that trend in Johnson's absence.
- Penney lost designers for brands such as St. John's Bay, and much of that talent has since moved to other companies.
- Penney sales dropped 25% last year, and the company's immediate steps to correct that trend are expected to include other reversals of Johnson policies.
From the article:
"... The plunge in employment leaves Myron "Mike" Ullman, the returning chief executive, with a huge morale deficit to fill even as he works to halt the slide in the company's sales. That task will be made more difficult because the waves of layoffs under Mr. Johnson—who was replaced last week—claimed thousands of employees with expertise in designing and selling clothes favored by the customers that Penney must now try to win back. ..."
