J.C. Penney cuts another 350 headquarter jobs

The sign outside the J.C. Penney store is seen in Westminster, Colorado May 16, 2011.

(Reuters) - J.C. Penney Co Inc announced another 350 job cuts at its Plano, Texas headquarters, completing a reorganization of its home office designed to help it bring costs in line with those of rivals.

The department store chain, which is involved in a radical transformation including a new pricing strategy and the remodeling of its fleet of 1,100 stores, said the cuts will contribute to its previously announced plan to reduce costs by $900 million a year by the end of 2012.

The Plano, Texas-based retailer said in April it would lay off 600 workers at its headquarters. As of January 28, 2012, the company had 159,000 employees.

Penney's transformation, which includes the discontinuation of coupons and most sales events, has gotten off to a poor start: Penney's same-store sales fell 18.9 percent in its first quarter, when it also had an unexpected net loss.

When Penney announced its turnaround plan in January, it estimated it could save $200 million a year in costs with a leaner home office.

In a company presentation in January, Penney said that in 2010, selling, general and administrative expenses were equal to 31 percent of revenue, compared with 21 percent at rival Kohl's Corp. (Reporting by Phil Wahba; Editing by Gerald E. McCormick)