Roughly 2,000 people will soon lose their jobs with the closing of 33 J. C. Penney stores.

The store released a statement on Jan. 15 saying that closing 33 underperforming stores is part of a turnaround effort in order to “focus its resources on the company’s highest potential growth opportunities.”

By cutting the locations, J. C. Penney said it estimates a result in annual savings of approximately $65 million.

Of the 33 stores closing, the J. C. Penney in the Muscatine Mall is one of them and is expected to close by May 1, a store employee said.

A store manager in Ames said he wasn’t supposed to comment on other aspects of the situation.

J. C. Penney media relations responded to a phone call inquiry as to where employees who lose their jobs will go after stores close.

The email response read:

Eligible associates who do not remain with the company will receive separation benefits, and, if possible, we will assist associates in identifying other job opportunities at nearby JCPenney stores. Additionally, we’re offering all associates a two day, on-site career training class. These classes will assist associates in writing resumes, filling out applications, answering interview questions and more.

February 2012, the store’s stock exchange was approximately $40. By February 2013, it had dropped to approximately $22 and is now at a price of $6.70.

J. C. Penney Transformation

Feb. 1, 2012 was the first day of the company’s transformation, a statement from the store said.

This plan includes a new pricing strategy, new corporate identity, a change in monthly promotional timings and changes to merchandise content and presentation, a press release said. The plan has month-to-month plans up to 2015, all in hopes of becoming “America’s favorite store.”

On March 12, 2012, the store announced that it was building a team of executives and retail veterans to transform the business and “become America’s favorite store … redefining the J. C. Penney brand and shopping experience.”

The plan included reinventing the J. C. Penney merchandise portfolio, looking into global brands, creating a brand makeover and reimagining the store experience.

The company said it was simplifying its business model to drive its revamp on April 5, 2012.

In the press release, CEO Ron Johnson said, “Simplicity is one of the guiding principles of our transformation. In years past, we’ve motivated our customers with endless promotions and discounts, and that required a lot of process-oriented work. At the new J. C. Penney, we’re beginning to inspire customers with great merchandise, an exciting shopping environment and ‘Fair and Square’ pricing.”

This is about the time the store changed its advertising and marketing to more of a monthly basis to meet with customers’ lives, one statement said. A Business Insider article reported that J. C. Penney had 590 sales promotions in 2011. This plan plunged promotions to 12, or a monthly basis.

The store reported an adjusted net loss of $81 million for the following quarter. The previous quarter, the net loss was $55 million.

“We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are confident the transformation of J. C. Penney is on track,” Johnson said in a financial release.

“The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course. This month we simplified our pricing, launched the first of our new shops, and accelerated our marketing efforts to focus on brands, products and value. Early response to these efforts has been very encouraging.”

J. C. Penney reported a net loss of $985 million for the 2012 year.

On April 8, 2013, Johnson stepped down from the company. The board of directors appointed Myron E. Ullman, III, who was CEO prior to Johnson until 2011.

Johnson was criticized by FOXBusiness strategy consultant Steve Tobak as being one the worst CEOs of 2013, saying Johnson’s move on transforming J. C. Penney’s whole business plan was risky.

An excerpt from the article reads: “The results were a complete disaster as customers fled, revenues plummeted, and cash dwindled. Johnson was canned in April but so much damage was done it’s still not clear if the 100-year-old chain will ever recover.”

As of now, J. C. Penney hopes to focus on improving its remaining 1,100 stores nationwide, though its New York Stock Exchange value is at one of the lowest points it has been at in the past ten years: $6.57 as of Jan. 24.