J.Crew cuts 250 jobs, shakes up senior management

J.Crew Group has announced several strategic changes across its organization to better position the company for sustainable and profitable growth. The company said that it will initiate a headcount reduction comprised of approximately 150 full-time and 100 open positions, primarily from its corporate headquarters.

"Today's retail environment is changing more rapidly than ever before. 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,” said J.Crew Chairman and CEO Millard Drexler in a media statement.

J.Crew announces strategic changes

As a part of the strategic reorganization Michael J. Nicholson, President, COO and CFO of J.Crew Group will additionally assume responsibility for the J.Crew Brand which includes the planning and allocation, merchandising, marketing and design functions.

Nicholson joined J.Crew in 2016 and has been instrumental in directing and driving J.Crew's strategic evolution. The company said, Nicholson has extensive experience across all aspects of retail and will continue to optimize operational excellence while leveraging the power of the iconic J.Crew brand. He will continue to report to Millard Drexler, Chairman and CEO.

Lisa Greenwald has been named Chief Merchandising Officer of the J.Crew Brand. In her new role, Greenwald will oversee merchandising across J.Crew women's, men's, and crewcuts. Greenwald joined J.Crew in 2004 and has held various positions of increasing responsibility in both the J.Crew and Madewell merchandising organizations.

Most recently, Greenwald served as Senior Vice President of Merchandising for Madewell where she leveraged her proven merchandising skills to build and grow the business. Greenwald will now report to Nicholson.

J.Crew also recently announced that Somsack Sikhounmuong was named Chief Design Officer, effective April 5, 2017. In this role, he oversees the women's, men's and crewcuts' design teams. Sikhounmuong has been with J.Crew since 2001, serving in various senior design roles, and from 2013-2015 he was Head of Design for Madewell where he was a key contributor to the brand's success. Sikhounmuong will now report to Nicholson.

Libby Wadle has been named President of the Madewell Brand. Most recently, Wadle served as President of the J.Crew Brand and joined the company in 2004. Throughout her tenure, Wadle has held senior management roles across multiple functions of the business, including J.Crew Factory and Madewell. Wadle will continue to report to Millard Drexler, Chairman and CEO and is well positioned to lead the Madewell team into its next phase of growth.

J.Crew expects to realize approximately 30 million dollars of annualized pre-tax savings in connection with this reduction in force and will record a charge of approximately 10 million dollars in the first quarter of fiscal 2017 for severance payments and other termination costs.

Picture:Facebook/J.Crew