After disclosing that it would be shutting down about 140 stores, J C Penney Company Inc (NYSE:JCP) has indicated that it will be cutting down on its workforce at the company’s headquarters. The retailer, however, did not reveal how many employees would be laid off or even when the layoff process would formally begin.

“Although I don’t have a number available to share, it is part of our normal course of business for leaders to ensure their respective teams are optimally staffed, so any position eliminations would vary by department,” a spokesperson for J.C. Penney, Joey Thomas, said.

Loss makers

The 140 stores that J.C. Penney shut down comprised about 14% of the retailer’s portfolio. Most of the stores that were marked for closure were in unattractive locations as they brought in under 5% of yearly revenues in 2016. The stores were also accumulating losses and the full list of those marked for closure will be released in the middle of this month after notifications have been sent to the employees.

By shutting down the stores, J.C. Penney is expecting to make yearly savings of approximately $200 million. However, a total of $225 million is expected to be incurred by the retailer in the first two quarters of 2017 as pre-tax charges.

Distribution centers

Besides stores, J.C. Penney will also be shutting down distribution centers that are located in Buena Park, California and Lakeland, Florida. Once the distribution center in Lakeland is shut down sometime in June, operations that were taking place there will be moved to another of the retailer’s other logistics facility located in Atlanta. The Buena Park facility, on the other hand, will be sold off.

Marvin Ellison, the chief executive officer of J.C. Penney, revealed that the retailer had offered its employees the option of early retirement on a voluntary basis. This was for employees who worked in the supply chain, the office and at the home office. To be eligible for the program, the employees would have to meet certain criteria. About 6,000 employees are eligible.

On Monday shares of J C Penney Company Inc fell by 4.79% to close the day at $5.96.