February 2009
Liz Claiborne Inc. has announced that it 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 previously reported closing of its distribution center in Mt. Pocono, PA and the suspension of merit pay increases for all employees.
These actions are in addition to cost reduction initiatives previously announced.
With the announcement, 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.
Commenting on the announcement, William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said, "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.”
“As we strive to enhance our liquidity and prudently manage our business through this uncertain time, business leaders across our organization are continually reviewing all costs and determining where they can make an impact. 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."
McComb continued, "We also decided to close the Liz Claiborne distribution center in Mt. Pocono, Pennsylvania in order to better align our distribution capabilities with the current and future realities of the economy and our business. This, too, was a tough decision. Whether for a short time or a longer tenure, our sincere thanks go out to those who have worked so hard on behalf of Liz Claiborne Inc."
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.
Additional details on the cost savings and charges associated with these actions will be provided on the company's earnings call in early March.
............................................................................
Read LIZ CLAIBORNE ARTICLES on TAXI Design Network
This news message is supported by The Bazaar, a marketplace to buy and sell creative objects. Earn more revenue by selling your prints, downloadable images, or custom products. Set up your store today and stand a chance to have your products featured on DesignTAXI, towards millions of lovers of creative content!
