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J.Crew to cut 250 jobs as part of reorganization

Privately held specialty retailer J.Crew is cutting 250 jobs, it announced on Tuesday.

The move comes as it embarks on several strategic changes. As part of a reorganization, J.Crew will reduce headcount by approximately 150 full-time and 100 open positions, mostly from its corporate headquarters.

J.Crew expects to realize about $30 million of annualized pre-tax savings by downsizing its staff and will record a charge of approximately $10 million in the first quarter for severance payments and other termination costs.

"We take these difficult decisions very seriously, but believe they are absolutely necessary," said Mickey Drexler, the retailer's chairman and CEO, in a release. "We are streamlining our teams as we evolve our business and processes to cater to the new demands of the retail industry."

It will also shuffle some executives into new roles.

As part of the reorganization, J.Crew COO and CFO Michael Nicholson will take on additional responsibility in planning and allocation, merchandising, marketing and design functions. Meanwhile, J.Crew named Lisa Greenwald, who will become the Chief Merchandising Officer, a position that reports to Nicholson.

Somsack Sikhounmuong became its Chief Design Officer earlier this month, while Libby Wadle has been named president of the company's Madewell unit.