Looks like J. Crew is the latest retailer to decide that jobs need to be cut. The specialty retailer announced on Tuesday that it would be cutting 250 jobs as it embarks on a strategic changes and reorganization.
The company also will give additional responsibility to COO and CFO Michael Nicholson in its reorganization plans.
Nicholson will be given the responsibility in planning and allocation, merchandising, and marketing and design functions.
J. Crew has also named Lisa Greenwald as the new Chief Merchandising Officer who will report to Nicholson.
Most of the jobs that will be sacrificed will come from headquarters. J.Crew will reduce headcount by approximately 150 full-time and 100 open positions, mostly corporate headquarters.
By cutting the jobs, the privately held company anticipates that it will realize about $30 million of annualized pre-tax savings by downsizing its staff. It will also record a charge of approximately $10 million in the first quarter that will go towards severance payments and other costs for terminating the job.
J. Crew Chairmand and CEO Mickey Drexler stated in a release, “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.”