J. Crew Announces Cuts

J. Crew Group Inc. (New York) has initiated a cost reduction program that is expected to generate approximately $40 million in annualized pre-tax savings. The measures include reducing its workforce by approximately 95 positions, or approximately 10 percent of its staff, including positions that are currently unfilled, primarily in the New York offices, and support functions in the field and distribution centers.
 

The company is also looking to produce efficiencies in areas such as supply chain, store operations, real estate and catalog circulation.

“As we are all aware, we are operating in a very tough economic environment,” says chairman and ceo Millard Drexler. “This has required us to make some difficult decisions, which we do not take lightly, but feel are necessary to ensure we remain competitively positioned over the long term.
 

“However, we believe our financial flexibility, our team, and our focus on quality products and the customer will enable us to navigate these turbulent times.”

The company previously lowered its planned capital expenditures for fiscal 2009 to approximately $55 to 60 million, a decrease of approximately 25 percent from the projected 2008 level.

The multi-channel retailer of women's and men's apparel, shoes and accessories operates 226 retail stores.