A Sign Of The Times: J.Crew Cuts Back

"Thanks!" to many of you, including Matt, Jordan, & Trish, as well as Anon at 1:40 PM & Heather (in this post), who let us know about J.Crew's current situation:

J.Crew trims staff, suspends 401(k)
By Associated Press
February 27, 2009
(Click here for article link)

Preppy retailer J.Crew Group Inc. says it will cut 95 jobs and suspend its 401(k) retirement plan through the rest of the year to help cut costs in a slumping economy. J.Crew says the cost-cutting program will help bring about $40 million in savings each year.

The job cuts, which include positions that are not filled currently, are mostly in New York offices and in field and distribution centers. The cuts represent about 10% of staffing in these departments. J.Crew also eliminated 2009 merit-based wage increases for its entire staff.

J.Crew will take a charge of about $1.5 million, before taxes, in the first quarter to reflect anticipated severance payments and costs for those affected.

J.Crew's press release (click here) quotes J.Crew's CEO and Chairman Mickey Drexler as saying:
"As we are all aware, we are operating in a very tough economic environment. This has required us to make some difficult decisions, which we do not take lightly, but feel are necessary to ensure we remain competitively positioned over the long term. However, we believe our financial flexibility, our team, and our focus on quality products and the customer will enable us to navigate these turbulent times."

Despite the additional press from First Lady Michelle Obama (refer to here) and Good Morning America's host Robin Roberts (refer to here) wearing J.Crew, they (like most retailers,) are facing some difficult times. Hopefully things will turn around (for both J.Crew, and the economy). :)

What are your thoughts on the news (surprised or not surprised)? Do you think the retailer should take any other steps to help curve the impact of the slumping economy?