US based fashion retailer J.Crew have announced it will cut 250 jobs, along with several other strategic moves in response to changing consumer behaviour, including demand for greater speed to market and personalised shopping experiences.
US based J.Crew says it will execute several strategic changes across its company to better position it for sustainable and profitable growth, which will include downsizings its workforce. This is in direct response to changing consumer behaviour, according to the company’s chairman and chief executive, Millard Drexler.
“Today’s retail environment is changing more rapidly than ever before. Customers demand greater speed to market, convenience and personalised shopping experiences,” says Drexler. “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.”
As a part of the strategic reorganisation, the company will lay off 250 employees, which it says is part of its strategy to make critical improvements to the company, to sustain long-term profitability and growth and create a more agile workforce.
“Additional organisational changes are also being made across the company reflecting J.Crew’s commitment to long-term profitable growth while, at the same time, creating a more efficient, nimble and streamlined team structure,” J.Crew said in a statement.
“The company will initiate a headcount reduction comprised of approximately 150 full-time and 100 open positions, primarily from its corporate headquarters.”
J.Crew expects to realise approximately US $30 million of annualised pre-tax savings in connection with this reduction in force and will record a charge of approximately US $10 million in the first quarter of fiscal 2017 for severance payments and other termination costs.
“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.”
The news of J.Crew’s job cuts follows its strategic hire of key roles only in the last month or so, including its new chief operating officer, chief information officer, chief merchandising officer, chief design officer and president of the company.
About J.Crew Group, Inc.
Founded in 1983, J.Crew is a US based international omnichannel retailer of women’s, men’s and children’s apparel, shoes and accessories. The brand initially debuted as a mail order catalogue business in hopes of capitalising on the success of Ralph Lauren and The Official Preppy Handbook. The brand was to be the price conscious antidote for the growing population of yuppie shoppers. In 1989, J.Crew opened its first store in New York, and now operates 278 stores around the world, including Paris, Hong Kong, Toronto and the UK, and has an ever growing and strong online (and catalogue) presence in 101 countries globally, including Australia.