Liz Claiborne to cut jobs

Liz Claiborne Inc. this week said it would streamline its operations in a move to boost profits and better integrate acquisitions, according to Fashion Wire. The New York-based maker of C&C California and Juicy Couture brands, said the move included 500 job cuts and a $60 million charge, and expects to the plan The company expects to save $60 to $65 million in a gross annual basis starting in 2007, with $30 million to $35 million of cost savings expected in 2006. The cost savings in 2006 and 2007 are before increased investment in marketing and in-store support for high-potential growth brands, including Juicy Couture, Lucky Brand and Sigrid Olsen, as well as other brands such as Liz Claiborne.

Liz Claiborne plans to cut about 500 positions, or about 4% of its global work force, with "significant" staff reductions at the more senior levels of the organization. The company also said it will close or "repurpose" about 20 retail stores. "While we applaud the difficult decision to reduce the workforce in order to enhance shareholder value, yesterday's restructuring announcement leads us to suspect headwinds may be stronger than previously indicated," said Morgan Keegan analyst Brad Stephens in a note to clients.

Paul Charron, Liz Claiborne chairman and chief executive said in a news release that the moves will make the company more nimble and flexible in an increasingly competitive marketplace. Shares in Liz Claiborne fell as much as 16 cents t0 $33.60 when the markets opened.