Liz Claiborne Eliminates 725 Positions

Liz Claiborne Inc. is implementing additional cost reduction initiatives in response to the highly uncertain economic environment, including the elimination of approximately 725 positions or 8 percent of its U.S. workforce; the closing of its distribution center in Mt. Pocono, Penn.; and the suspension of merit pay increases for all employees.

 

Since 2007, the company has closed six distribution centers, eliminated about 2,200 global staff positions and streamlined its brand portfolio by selling, closing or licensing 14 of its brands.

 

William L. McComb, chief executive officer of Liz Claiborne Inc., says, "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 SG&A. Personnel decisions are always the hardest, especially in times like these. And while reducing head count is not the only cost cutting measure being implemented, it is certainly the most difficult."

 

The job eliminations span all levels of the company and are scheduled to be completed by the end of the first quarter of 2009. Eligible associates will be offered appropriate severance packages and outplacement services.