J. Crew Group Inc. has eliminated 95 positions, primarily in its New York offices and support functions in the field and distribution centers.
The move was taken as part of a cost reduction program revealed today that is expected generate approximately $40 million in annual pre-tax savings. The company said in a statement that it implement the program in response to the challenging economic environment, which it expects to continue through the current fiscal year.
Other cost reduction programs have been initiated to improve efficiencies in catalog circulation, supply chain, store operations and real estate.
The company also suspended 401(k) plan matching contributions through the balance of 2009 and eliminated merit-based wage increases for the entire work force.
As previously announced, the company also has lowered its planned capital expenditures for fiscal 2009 to approximately $55 to $60 million, a decrease of about 25% from the projected 2008 level.
