J. Crew Group to slash 250 jobs
US-based J. Crew Group is to cut 250 jobs as part of a strategy to ensure sustainable and profitable growth.
Comprising 150 full-time and 100 open positions in its corporate headquarters in New York, the job cuts are part of a series of organisational restructuring measures to ensure a more efficient and streamlined team structure, as well as long-term profitable-growth.
The total amount accruable to the company as a result of the job cuts is estimated to be approximately $30m in annualised pre-tax savings.
The expenditure incurred on severance payments and other termination costs, totalling approximately $10m, will be reflected in the numbers related to first quarter of this fiscal year.
J. Crew chairman and CEO Millard Drexler said: "We take these difficult decisions very seriously, but believe they are absolutely necessary.
“We are streamlining our teams as we evolve our business and processes to cater to the new demands of the retail industry.
“While challenging, we know what needs to be done and this is a critical step to position J.Crew for the future. We are committed to treating impacted associates with respect and support through this period of change."
Pursuant to the strategic reorganisation, the company has handed additional responsibility to J. Crew Group president, CEO and CFO Michael J Nicholson. Additional duties for the brand include planning and allocation, merchandising, marketing and design.
It will also assign new roles and responsibilities to other executives.
Drexler added: "Today's retail environment is changing more rapidly than ever before. Customers demand greater speed to market, convenience and personalised shopping experiences.
"At J. Crew, we are embracing this change and making necessary adjustments to our business and teams to move us forward in a more efficient and dynamic way."
J. Crew Group is an omnichannel retailer of clothing, shoes and accessories. It currently operates 278 J.Crew retail stores and 179 factory stores.
Image: J. Crew at Markville Mall. Photo: courtesy of Raysonho via Wikipedia.