J. Crew Cuts Jobs, Suspends 401(k) Program

  NEW YORK (AP) -- Preppy retailer J. Crew Group says it will cut 95 jobs and suspend its 401(k) plan through the rest of the year to help cut costs in a slumping economy.

  J. Crew says the cost-cutting program will help bring about $40 million in savings each year.

  The job cuts, which include positions that are not filled currently, are mostly in New York offices and in field and distribution centers. The cuts represent about 10 percent of staffing in these departments.

  J. Crew also eliminated 2009 merit-based wage increases for its entire staff.

  J. Crew will take a charge of about $1.5 million, before taxes, in the first quarter to reflect anticipated severance payments and costs for those affected.

(Copyright 2009 by The Associated Press. All Rights Reserved.)