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Layoff News

J.C. Penney Co. Inc., a Texas-based chain of American mid-range department stores, announced a plan to close its operations in McClellan, California that will leave about 350 plant workers jobless. J.C. Penney Co. confirmed that its North Highlands plant will be permanently closed along with other stores and catalog and outlet operations. The company officials said that the move is part of the company’s plan for increasing its revenues and profitability. The company is also slated to close two call-center operations in the area and will just realign its operations across the US. The 139,000-square-foot plant employed 400 people until 55 workers were laid off in March bringing the workforce to about 350.

Tim Lyons, company spokesman, said that the McClellan plant closure will happen within two months. “The J.C. Penney manufacturing operation, at which workers cut and sew drapes and make other window coverings, will close March 28. The plant has operated from McClellan Business Park for three years and before that in Roseville since at least 1991.” Lyons added that other facilities will remain operational for now. “The retailer chose to close the North Highlands operation and keep operating its only other custom decorating operation in Statesville, N.C. The North Carolina plant operates in a building that J.C. Penney owns and has enough space to take on more work.”

J.C. Penney officials said that the company is also looking at closing five additional department stores and one JC Penney Home Store. However, the company is still deciding on where to make the cuts. The company’s catalog business, which includes 19 outlet stores, is also slated for closure along with the consolidation of its furniture outlet business.

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