J. Crew Group, which runs the Madewell and J. Crew brands, has undergone layoffs, a company spokesperson confirmed to Retail Dive.
The company did not answer questions about the number of employees or positions impacted, though the apparel retailer did say it concerned a small number of roles.
“We have conducted a comprehensive review of our organization and made decisions to support efficiency and long-term growth,” a J. Crew Group spokesperson said in a statement. “Part of this initiative has been making organizational changes and streamlining functions which has impacted a limited number of roles. We are confident these changes will enable us to further invest in our brands and our people with increased focus on performance, collaboration, and productivity.”
Women’s Wear Daily reported on Monday that the layoffs concerned less than 3% of the workforce at J. Crew’s corporate office.
Moody’s recently changed J. Crew parent company Chinos’ outlook to negative from stable. A Feb. 15 note states the change reflects the view that the company’s credit metrics will continue to weaken through fiscal Jan. 2024, “due to the expectation of a heavily promotional retail environment, uncertain customer demand, elevated inventory levels and margin compression.”
Additionally, “even though topline has remained resilient,” J. Crew has been experiencing higher freight, input and labor costs along with increased marketing expenses and an industrywide promotional environment that has weighed on margins and cashflow, according to Moody’s.
The apparel retailer recently announced the launch of its spring campaign to honor its 40th anniversary. “Back in spring 1983, the very first J. Crew catalog launched a new era of American style,” a company spokesperson said about the campaign. “As J. Crew looks forward, the mission remains the same: to create clothes of quality that you’ll wear and love for decades, and maybe even pass down one day.”