The layoffs would impact corporate, field management, and international roles and eligible departing employees would receive a severance package. The company is also in talks with its landlords regarding store closures.

Penney filed for bankruptcy protection in May, with plans to explore a possible sale, joining a spate of brick-and-mortar retailers to crumble under the pressure brought on by the COVID-19 pandemic.

On Tuesday, Calvin Klein owner PVH Corp also announced a reduction in the number of office employees.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Ramakrishnan M. And Aditya Soni)