New York (US)-based fashion brand J.Crew has declared several calculated changes across its organization to place itself on a faster growth chart. As part of this new plan, the omni-channel retailer has shuffled core leadership roles and will cut around 250 jobs. The layoff will comprise of 150 full-time and 100 open employee positions, principally from its corporate headquarters.
“Today’s retail environment is changing more rapidly than ever before. Customers demand greater speed to market, convenience and personalized shopping experiences,” stresses Millard Drexler, Chairman and CEO – J.Crew, adding, “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.”
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As part of its restructuring strategy, the company has named Michael J. Nicholson as President, COO and CFO of J.Crew Group Inc., who joined the fashion brand in the year 2016 and has been instrumental in directing and driving its strategic developments. Lisa Greenwald will be promoted to Chief Merchandising Officer of J.Crew Brand from her position of Senior VP of Merchandising for Madewell. As announced earlier after Jenna Lyons’ departure, Somsack Sikhounmuong will become Chief Design Officer, effective April 5, 2017 and will administer all of J.Crew’s design teams. Libby Wadle has been named President of Madewell Brand and will stand in the perfect position to lead the Madewell team into its subsequent chapter of evolution.
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Talking of the organizational restructuring, Drexler continues 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.”
The staff reduction move is expected to help them gain roughly US $ 30 million of annualized pre-tax savings and will oversee US $ 10 million progression in the first quarter of fiscal 2017 for severance payments and other termination costs.
