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Published
Jun 11, 2015
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J.Crew cuts 175 jobs

Published
Jun 11, 2015

After a disappointing first quarter, J.Crew has announced a reorganisation at its corporate headquarters and the layoff of 175 employees, or 12% of the workforce at its head office in New York.

In the quarter spanning February to April, the brand recorded an operational deficit of more than 500 million dollars for a revenue of.... 581 million.

The only sector of the group that did well was the Madewell brand, sales for which increased 33% to $61.9 million. Madewell comparable sales increased 12% following an increase of 13% in the first quarter last year.

Which perhaps explains the decision to appoint Somsack Sikhounmuong head of women's design for the J.Crew brand, effective immediately. Sikhounmuong had been the head of design for madewell for the past two years and in that role had been a key contributor to Madewell's success. He succeeds Tom Mora, who will be leaving the Company.

"We are making meaningful and strategic changes across our organization to better position us for future growth.  While many of these decisions were difficult, they are necessary," said J.Crew Chairman and CEO Millard Drexler.

As of June 10, 2015, the company operates 283 J.Crew retail stores, 88 Madewell stores, and 144 factory stores. No comments have been made on any further layoffs.

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