If there is a head scratcher story of the year this just might be it.
A lot of mistakes have been made at J.C. Penney since Ron Johnson and his team took over at the department store chain. While many point to changes in pricing and promotion as the why behind plummeting sales at the company (Q3 comp sales down 26.1 percent), another reason may have been spelled out in Penney's recent SEC filing.
The company pointed to the loss of workers whom Penney has found "difficult to replace." Workforce reductions were brought about through firings and attrition.
According to a Bloomberg News report, workforce reductions have meant that more responsibility is being piled on the remaining employees and that even more may be asked of workers in the future as further cuts may be in the offing. The possible changes "may negatively impact communication, morale, management cohesiveness and effective decision-making, which could have an adverse impact on our operating efficiency."
How likely is J.C. Penney to rebound if it doesn't have buy-in from employees?