J Crew has announced that it will be cutting 250 jobs mostly from the brand’s headquarters team.
According to an article on Fashionista, J Crew has announced that it will be cutting 250 jobs. The jobs will mostly be cut from the brand’s headquarters team, including 150 full time jobs and 100 open positions. The jobs cuts will save the brand about $30 million annual, however, severance pays and other costs will cost the brand about $10 million.
Frank Muytjens has also resigned as head of menswear design. Muytjens resignation comes a couple of weeks after Jenna Lyons resigned as President and creative director of the brand after 26 years. Lyons had been replaced by Somsack Sikhounmuong, who was previously women’s Head of Design. She is now, however, in charge of the women’s, men’s, and children’s design teams.
Lyons will also be paid $1 million in cash severance in addition to the $10 million it will cost J Crew to make the job cuts.
Chairman and CEO Mallard Drexler released a statement saying,
“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.”
Drexler will also be moving job positions between J Crew and Madewell to which he said, “we have an incredibly talented team of passionate leaders and will further leverage their strengths and talents as we continue to focus on making critical improvements in our business.”
This is just the latest in the brand’s efforts to increase sales and profits. In December, J Crew was said to be in talks with creditors to lower its approximately $2 billion debt. Then, the brand reported declining sales for the fourth fiscal quarter 2016 and announced that it would be closing up to 20 stores.
So, what do you think? Will sales and profit sales increase at J Crew? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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