J.Crew Cuts Staff in Cost-Reduction Program

A while back some our fave places to shop announced their plans to cut staff.

So I wasn’t that surprised when I heard of J. Crew Group, Inc.’s plan to begin a serious cost reduction program.

According to the company’s calculations, they’ll save about $40 million before tax every year with this news strategy.

To save more they’ve begun by

1. Reducing the workforce by approximately 95 positions (including positions that are currently unfilled) primarily in the New York offices and support functions in the field and distribution centers. That’s about 10% of each department.
   
2. Suspending the 401(k) Plan with J. Crew matching contributions through the balance of 2009.
   
3. Eliminating 2009 merit based wage increases for the entire workforce.
   
4. Initiating other company-wide cost reduction programs to produce efficiencies in areas such as supply chain, store operations, real estate, catalog circulation, and other general savings in the New York offices.
   

If management needed suggestions on how to help boost their bottom line, they could’ve asked me!

My recommendation?

1. Having super sales at every J.Crew store!!!

On a serious note, however, this announcement really is a sign of the times.

I’m  hoping the people who lose their jobs find new (and better) gigs soon.