Too many departing employees could hurt J.C. Penney in the future, the retailer noted in its most recent SEC filing.

In its SEC filing notice, under “risk factors,” the retailer said that ongoing staff reductions “have resulted in a substantial amount of turnover of officers and line managers with specific knowledge relating to us, our operations, and our industry that could be difficult to replace.”

“We now operate with significantly fewer individuals who have assumed additional duties and responsibilities and we could have additional workforce reductions in the future,” it warned. “If we are unable to retain, attract, and motivate talented employees with the appropriate skill sets for our new business model, or if the changes to our organizational structure or business model adversely affect morale or retention, we may not achieve our objectives and our results of operations could be adversely impacted.”

J.C Penney has faced declining sales and profits ever since it switched to a “fair and square” pricing policy.

JCK