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J.C. Penney Sees Risks in Morale, Efficiency as Workers Exit

J.C. Penney Co., the department-store company undergoing a turnaround led by Chief Executive Officer Ron Johnson, said its operating efficiency may be hurt after it fired employees while others left voluntarily.

The company listed new “risk factors” surrounding its workforce reductions, as well as concern that customers may not accept new marketing and merchandising strategies, in its third-quarter regulatory filing yesterday. J.C. Penney, based in Plano, Texas, said the departures of officers and line managers with “specific knowledge” about the company and its industry may be “difficult to replace,” according to the filing.