J. Crew Group Inc. on Friday announced a cost reduction program that executives say will generate approximately $40 million in annualized pre-tax savings. Perhaps for other retailers struggling in the current economic environment, J. Crew’s actions might be worth checking out.
The apparel retailer plans to cut 95 jobs, primarily in its New York offices and also support functions its field and distribution centers. Those employees impacted by this have been offered severance pay as well as assistance with their transition.
J. Crew has suspended its 401 (k) matching contributions through the end of this year.
The retailer has eliminated across-the-board merit-based wage increases.
Finally, J. Crew has launched company-wide cost reduction programs to produce efficiencies in areas such as supply chain, store operations, real estate and catalog circulation.
J. Crew had already announced that it is decreasing its planned capital expenditures for fiscal 2009.