Liz Claiborne cuts 725 jobs: Turnaround on the horizon?

Posted Feb 3rd 2009 1:15PM by Zac Bissonnette
Filed under: Employees, Liz Claiborne (LIZ)

The parade of layoffs continues with Liz Claiborne (NYSE: LIZ) announcing that it will cut 725 workers -- 8% of its US workforce.

CEO William L. McComb noted in a press release that "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."

The company's performance has been absolutely brutal of late, and the stock price has followed. But the company will be debuting its new collection designed by Isaac Mizrahi this month, and the buzz appears to be quite good.

Liz Claiborne sold has sold off a lot of brands over the past two years -- a wise move given that the value of those assets has likely plunged in the interim. Turning around the company will be impossible without an economic recovery but by cutting costs, ditching lesser brands, and hiring a star to revitalize a legendary brand that has lacked life for years, Liz Claiborne could be poised for a comeback.

Tags: LIZ, Liz Claiborne, LizClaiborne

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Reader Comments (Page 1 of 1)

2-04-2009 @ 6:56PM

fragvp said...

Liz Claiborne's decline began with the appointment of it's new CEO who is fortunate to have the current financial crisis as a pillow on which to fall. The board of Liz Claiborne has not properly executed it's fiscal responsibility.

4-22-2009 @ 11:44PM

Patrick said...

Why is this stock even rising to over $4 when they have posted an incredible amount of loss and no profit in the next 12 months horizon?.

On April 22nd , 2009...LIZ is up 50 cents of 14.29%.