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J Crew lays off 175 at its NY headquarters

J.Crew has laid off about 175 people from its New York headquarters. (Tweet this)

The move will affect several divisions, including store operations, production, sourcing, and merchandising, according to a company statement issued Wednesday. The layoffs are part of an effort to streamline operations and reduce overall expenses, the company said.

"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," J.Crew CEO Millard Drexler said, in the statement.

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The upscale clothing retailer also announced other organizational changes, including naming a new head of women's design.

Earlier on Wednesday, Racked.com reported that those who were laid off were asked to leave the building immediately.

The cuts extended to the Madewell division as well, reports Racked.

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Last week, the company reported first-quarter earnings that included decreased revenue, sales and gross margins.

"As a result of current and expected future operating results, the company concluded that the carrying value of the J.Crew reporting unit exceeded its fair value and recorded an estimated non-cash goodwill impairment charge of $341 million," the company stated, in a release.

J.Crew is a private company, owned by TPG Capital and Leonard Green & Partners as of 2011.

Read the full coverage at Racked.com.