© 2015 The Texas Lawbook.
By Mark Curriden
(Aug. 3) – JC Penney dramatically reduced the size of its in-house legal department last week, laying off about two-dozen lawyers and staff.
Instead, the Plano-based retailer has strategically decided to outsource significant parts of its legal needs, including litigation, employment and labor law and tax law, to outside law firms.
JC Penney last week dismissed eight of its in-house lawyers and eliminated a handful of lawyer positions that recently became open due to voluntary departures. In addition, more than a dozen members of the legal department’s support staff were laid off.
Four months ago, long-time JC Penney General Counsel Janet Dhillon shocked the staff when she and Leonard Sherer, an associate general counsel, suddenly resigned. Dhillon last month was named the general counsel at New Jersey-based Burlington Stores.
New JC Penney General Counsel Janet Link, who was hired by Dhillon last September to be the company’s deputy general counsel, informed the staff of the changes last Monday.
Link, who was the former deputy general counsel at Clear Channel Media Holdings, did not respond to requests for an interview.
Just three years ago, the JC Penney corporate legal department employed 50 lawyers. Today, there are fewer than 24 full-time attorneys.
“We reduced the size of our legal team to more appropriately reflect the needs of our business,” said JC Penney spokesman Joey Thomas. “While it is always difficult taking actions that directly affect our valued associates, we feel this is a necessary business decision.
“Approximately 35% of our legal department was affected,” he said. “Many tasks have been consolidated with existing positions in the department, and we do anticipate outsourcing work in certain subject areas.”
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