Liz Claiborne Cuts 725 Jobs
Posted on February 3, 2009Dow Jones reports Liz Claiborne Inc. is cutting 725 jobs in its second round of cuts during the past two years. They've cut 2,200 positions over the last two years.
The move comes as Liz Claiborne has continued to struggle amid the woes in the retail industry. The company said Tuesday it will cut 725 positions and suspend merit pay increases for all employees. The job eliminations span all levels of the company and are scheduled to be completed by the end of the first quarter.Liz Claiborne's CEO William L. McComb made the following statement: "The challenging retail and economic environment requires us to remain more focused than ever on cost rationalization and act decisively to manage the relationship between our revenue and our (selling, general and administrative expenses)."
The company the past two years has closed six distribution centers, eliminated 2,200 jobs and streamlined its brand portfolio by selling, closing or licensing 14 brands.
Liz Claiborne has struggled to find its identity in recent years. The company has focused on developing its "direct" brands - Kate Spade, Lucky Brand, Juicy Couture and Mexx - by beefing up their marketing and adding branded specialty stores.
Liz Clairborne Inc. employed about 17,000 people worldwide before the layoffs. The company's brands include Juicy Couture, Kate Spade and Lucky Brand Jeans.