J.C. Penney Execs Commute To Work Via Jet -- While Laying Off 43,000

Ron Johnson J.C. PenneySince Ron Johnson became CEO of J.C. Penney, he has been under fire. He has slashed some 40,000 jobs and did away with much of the discount coupons that customers loved, and still the troubled retailer remained on the brink, causing investors and analysts to question the merits of his "transformation" plan. Now, a new report by Bloomberg reveals that Johnson approved J.C. Penney paying for at least nine execs to commute to work via jet.

Johnson, along with the company's head of human resources and two executive vice presidents, commutes from California to Penney's Plano, Texas, headquarters. The company's chief creative officer and senior design executive commute from New York, while another executive commutes from Boston, according to Bloomberg's sources. Six of the executives who commute from California are former Apple colleagues of Johnson's.


More: UBS CEO Paid $9 Million While Laying Off 10,000

Business Insider reports that J.C. Penney has a pair of Gulfstream jets. To purchase these jets would cost $41 million each. A typical round-trip flight from California to Texas would cost around $41,000, Bloomberg reports.

A J.C. Penney's spokeswoman told Bloomberg that "with all the travel that retail leaders do, it doesn't always make sense to uproot and relocate their families."

Since Johnson became CEO in 2011, J.C. Penney has axed 43,000 full-time and part-time positions -- about 27 percent of its staff, according to its annual SEC statement. The company reduced expenses by $386 million, but sales have fallen 25 percent, the lowest since 1987, according to Bloomberg.




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Larry

I see no problem with top execs getting big money and perks like jets.

Laying off employees is like trimming the fingernails but cutting back the CEO is a beheading. Which will kill JCP quickest? Let management manage however they see fit. They don't want to fail either.

March 23 2013 at 4:02 PM Report abuse rate up rate down Reply
Paige Kawaii Larson

WELL JUST FOR EVERYONE TO KNOW. MACYS IS NOT THAT FAR FROM DILLARD'S FOR MORALE. AND WONDERING IF YOU WILL BE THE NEXT TO LOSE YOUR JOB. SOME QUIT, AND SOME WAIT IT OUT UNTIL THEY ARE LET GO.

March 22 2013 at 9:19 PM Report abuse rate up rate down Reply
klelaurin

This kind of travesty needs to be reported widely. This guy & others like him are the epitome of greed, arrogance and narcissism.

March 22 2013 at 8:35 PM Report abuse -1 rate up rate down Reply
domegrp

That's not very green of them.

March 22 2013 at 7:56 PM Report abuse rate up rate down Reply
Terry

All you can hope for is a mid air collision, then they can try it again as J.C.Penney use to be a good store. They did cancel my credit card when I got one payment behind on my Mortgage payment, got caught up on the mortgage payment but won't bother with J.C.Penney Card!

March 22 2013 at 6:53 PM Report abuse rate up rate down Reply
goatcars2

He can do whatever he wants...it's a private company. Our President and wife fly all over the place on taxpayer $$$$ while unemployment is higher now than when he took office 4 years ago AND he has added 6 TRILLION $$$ to the debt . Now THAT'S annoying !!!!!

March 22 2013 at 5:50 PM Report abuse rate up rate down Reply
2 replies to goatcars2's comment
nielinvegas

Think. Unemployment is lower now. this story is about JCPenny not the President Where were you when the Bushes spent more time at his ranch than at the W.H.

March 22 2013 at 8:51 PM Report abuse -1 rate up rate down Reply
avdavy

Go ask Mommy why the President flies in airplanes. Then go ask John Boehner why he spends so much money on Social Security, Medicare and defense.

March 22 2013 at 9:52 PM Report abuse rate up rate down Reply
Jerry

This should surprise no one who's even remotely familiar with corporate America and the executives that are running their companies into the ground. Apparently these idiots have an inflated sense of entitlement.

March 22 2013 at 5:39 PM Report abuse rate up rate down Reply
cdollartoo

Meanwhile, the stores are going down the drain. That is what you get when you pay CEO's outrageous salaries and let computers hire your employees.

March 22 2013 at 5:34 PM Report abuse rate up rate down Reply
tres7594@mail.com

Don't worry...if the powers that be get smart and fire this guy...he'll walk away with a multi-million dollars 'separation' package!
Why don't companies...any companies, look to hire executives with proven, 'positive' track records in their field, utulize 'common sense', and work for the company's and it's employees best interests and not their own!!!!!!

March 22 2013 at 5:06 PM Report abuse +1 rate up rate down Reply
metsfan1989

A couple months ago I was at the mall and I needed some thermal long johns, JCP had a pack with 1 shirt in it for $17. I went on my Amazon app standing right there and found the same thing for $9. Don't support this guy

March 22 2013 at 4:11 PM Report abuse rate up rate down Reply

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