J.Crew shakes up management team

J.Crew Group announced Tuesday that it is undergoing strategic changes, being one of the key ones a trimmed down management team.

As reported, the preppy fashion brand plans to let 250 employees go, mainly from corporate positions held at the company’s headquarters.

According to sources close to the matter, this measure is expected to save the company 30 million dollars. On the other hand, the staff reduction will bring 10 million dollars’ worth of termination costs in the first quarter of fiscal year 2017.

Explaining the plan to analysts, J.Crew chairman and CEO Millard Drexler called the changes “necessary adjustments” to make the business more efficient in providing customers speed to market, convenience and personalised experiences.

The management team will go through a deep reshuffle, with Michael J Nicholson, who is currently president, COO and CFO of J.Crew Group, now becoming also be responsible for the J.Crew brand. Lisa Greenwald, former senior vice president of merchandising for Madewell, will become chief merchandising officer at J.Crew. As previously announced, Somsack Sikhounmuong is J.Crew’s new chief design officer. Finally Libby Wadle, formerly the president of the J.Crew brand, has been named president of Madewell.