J. Crew to cut jobs, costs

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Despite a frenzy of attention after Michelle Obama and her daughters donned J. Crew items at last month’s presidential inauguration, the preppy retailer said today that it would reduce its workforce and cut other costs.

J. Crew Group Inc. said it would eliminate 95 positions primarily in its New York offices and in its field and distribution centers. The cuts represent about a 10% reduction in staffing for the affected departments.

The New York-based company also said it would suspend 401(k) matching contributions and eliminate merit-based pay increases for its entire workforce this year.

Those moves, plus cost cuts in store operations and other areas, are expected to reduce annual expenses by about $40 million.

‘As we are all aware, we are operating in a very tough economic environment,’ Chief Executive Millard Drexler said. ‘This has required us to make some difficult decisions, which we do not take lightly but feel are necessary.’

Shares of J. Crew rose 9.5%, or 98 cents, to $11.26. The company operated 226 retail stores and 74 outlet stores at the end of last month.

J. Crew found itself in the spotlight at the presidential inauguration, when Obama accessorized her outfit with cashmere-lined green leather J. Crew gloves and daughters Malia and Sasha were dressed almost entirely in the retailer’s fashions.

The company said items similar to the clothes the girls wore would be part of its fall collection.

-- Andrea Chang