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JCPENNEY TO RESTRUCTURE DATA PROCESSING NETWORK; $11 MILLION SAVINGS ANTICIPATED

 JCPENNEY TO RESTRUCTURE DATA PROCESSING NETWORK;
 $11 MILLION SAVINGS ANTICIPATED
 DALLAS, Sept. 10 /PRNewswire/ -- J. C. Penney Company, Inc. (NYSE: JCP) expects to reduce its costs by $11 million, or 10 cents per share, annually by restructuring its data processing network in 1993, it was announced today by David V. Evans, vice president and director of information systems.
 Under the restructuring plan, the network's operating activities, now divided among four major data centers, will be consolidated into a single production control center in Dallas. The new center will perform tasks to install, update, maintain, and manage all activities necessary to operate all systems; provide a high level view of the condition and status of all major components of the computing utility; monitor alerts from system resources which may require adjustments; and analyze and resolve trouble spots which automation cannot achieve.
 As a result of the consolidation, it is anticipated that there will be a net loss of approximately 300 management and non-management positions. Some of these positions will be eliminated through attrition prior to the completion of the restructuring. About 140 positions will be created in Dallas to staff the production control center, and current associates (employees) holding eliminated positions will be considered for these opportunities.
 The company said it would help identify potentially suitable career opportunities inside and outside of JCPenney for associates not required for the remaining operations.
 Commenting on the restructuring strategy, Mr. Evans said, "We are automating the communications and data processing environment, capitalizing on improvements in technology to reduce our cost and enhance our effectiveness, redefining job structures by eliminating routine and repetitive tasks, and establishing a formal total quality management process to improve customer service at JCPenney."
 Mr. Evans added, "We see continued improvements in computing and communication technologies both in speed and size. Mainframe computers and storage devices have gotten smaller as they have become more powerful. The introduction of automation software and robotic hardware will permit the physical separation of the equipment from associates operating and managing it. Rapid technology changes will require greater flexibility in infrastructure, operation, and management of the computing facility."
 -0- 9/10/92
 /CONTACT: Duncan Muir of J. C. Penney, 214-591-1329/
 (JCP) CO: J. C. Penney Company, Inc. ST: Texas IN: REA SU:


TS -- NY024 -- 7899 09/10/92 10:03 EDT
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Publication:PR Newswire
Date:Sep 10, 1992
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