A few weeks after shaking things up with the abrupt exit of its creative director, more changes are afoot at J.Crew: The company announced today that it would be cutting about 250 jobs as it tries to cut costs amid struggling sales.
J. Crew says that the eliminated positions will include 150 full-time jobs and 100 open positions it won’t fill, mostly located at its corporate headquarters in New York City.
Citing today’s rapidly changing retail environment as part of the reason for “making necessary adjustments” to its business and workforce, J. Crew Chairman and CEO Millard Drexler says the company takes these “difficult decisions very seriously.”
“We are streamlining our teams as we evolve our business and processes to cater to the new demands of the retail industry,” he said in a statement. “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.”
The company says it expects to realize about $30 million of annualized pre-taxed savings in connection with the layoffs.
The company currently operates 278 J. Crew retail stores, 179 factory stores, and 115 Madewell stores, The Wall Street Journal notes, but it comes as no surprise that J. Crew is struggling to get foot traffic: The brand has to compete not only with the ease and convenience of e-commerce, but with its fellow clothing chains that specialize in “fast fashion,” like Zara. The WSJ reports that J. Crew is currently carrying about $2 billion in debt.
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