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After laying off employees, J.C. Penney hires Oracle Corp. to take over IT duties

Penney CEO Ron Johnson has said the retailer had too many legacy systems that were all customized and so came with expensive maintenance costs. The outsourcing move is one of the cost-saving decisions that Johnson is implementing with the goal of coming up with $900 million in annual expense cuts. Those cuts are paying for Penney’s transformation into “America’s favorite store.” Penney employees will run Oracle’s software and it no longer will need as many IT people as it did to run and update its legacy systems.

 

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