Liz Claiborne to Cut 725 Jobs

New York City Liz Claiborne Inc., which operates retail stores under brand banners such as Juicy Couture, Kate Spade and Lucky Brand, announced Tuesday that it will eliminate about 725 jobs, or 8% of its U.S. work force, as it launches a cost-cutting mission amid tightened consumer discretionary spending.

The company said the job cuts will occur at all levels and are set to be finished by the end of the first quarter of 2009.

"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 (selling, general and administrative expenses)," CEO William McComb said in a statement.

The retailer's other cost-cutting actions include suspending merit raises for all workers and a previously announced plan to shut its Mt. Pocono, Pa. distribution center.

With this latest 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.