The parent company of JCPenney, which owns a portfolio of brands including Aéropostale, Brooks Brothers, and Shein, has announced a 9% reduction in its corporate workforce.
The job cuts follow a previous streamlining initiative that resulted in a 5% reduction in the workforce.
A spokesperson for Catalyst Brands said in a statement to Retail Dive: “We appreciate the contributions of all affected associates and are committed to supporting them with transition resources, including severance and benefits.
“While these are difficult choices, we are confident they will ultimately position us to better serve our customers and deliver on our mission to give them high-quality products at exceptional value for every moment in life.”
The number of people set to be affected remains undisclosed by the company. As part of their plans to streamline operations, the company also announced plans to close eight underperforming locations in the US earlier this year.
JC Penney said in a statement: “The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes or other factors.”
“These closures are unrelated to the recent Catalyst Brands merger.”
The company joins a growing list of retailers downsizing due to mounting pressure from inflation, a changing economic environment, and competition from fast fashion giants.
Meanwhile, fast-fashion giant recently Forever 21 filed for a second bankruptcy and began to wind down its operations at all its stores across the US. Forever 21 blamed rising competition from online fast fashion retailers such as Shein and Temu for its financial struggles.
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