J. Crew Group Inc. announced on Tuesday that it will make several strategic changes for the sustainable and profitable growth of the company.
As part of the reorganization plan, the company would cut 250 jobs, including around 150 full-time and 100 open positions. Most of the positions cut are from its New York headquarters. The reduction of jobs would bring a one-time charge of $10 million for severance payments and other termination costs in Q1, however, the company expects that by cutting jobs, it will generate $30 million in annual cost savings.
“Today's retail environment is changing more rapidly than ever before. Customers demand greater speed to market, convenience and personalized shopping experiences,” Millard Drexler, the Chairman and CEO of J.Crew, said in the statement. “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.”
In addition to job reduction, J. Crew also announced a number of executive changes. Michael Nicholson, the COO and CFO of the company and the former executive of Ann Inc., will start to oversee J. Crew brand in marketing and design decisions. At the same time, Lisa Greenwald was appointed to be the Chief Merchandising Officer of the company. In addition, Libby Wadle was named the president of the Madewell unit.