Crisis at J. Crew as company fires 10% of its corporate staff and shakes up management

Hayley Fitzpatrick

J. Crew is cleaning house and trading in designers.

The retailer just fired 10% of its corporate staff, about 175 employees, and replaced its top women's designer, according to CNN.

Most of the layoffs affected workers at the New York headquarters.

Also, Tom Mora, J. Crew's head of women's design, is being replaced by Somsack Sikhounmuong, design chief for sister brand Madewell.

Madewell is a small division of the J. Crew Group with only 88 stores.

It accounts for 11% of the company's revenue, and it is managing to do really well while the J. Crew brand suffers.

The subsidiary's sales rose 33% to about $60 million last quarter, according to International Business Times.

Sikhounmuong's input could be incredibly beneficial to the brand.

His designs could help improve womenswear for the company, which many customers feel has become tired and poorly crafted.

Mickey Drexler, the J. Crew CEO, says the brand is working to fix declining sales.

"We are making meaningful and strategic changes across our organization to better position us for future growth," Drexler said. "While many of these decisions were difficult, they are necessary."

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