J. Crew has let go 175 employees from its New York headquarters and replaced its lead women’s designer.

J. Crew’s latest financial report showed that sales were down 5 percent compared to last year. The Madewell brand, which caters to women, has been a highlight for the company. Its sales were up 33 percent in 2014 over the previous year. 

Somsack Sikhounmuong, the former head of design for the Madewell brand, has been named lead women’s designer at J. Crew. He is replacing Tom Mora, who will be leaving the company. Joyce Lee, a longtime Madewell senior design member who previously worked at Michael Kors and Marc Jacobs, will replace Sikhounmuong.

“We are making meaningful and strategic changes across our organization to better position us for future growth,” CEO Mickey Drexler said in a statement. “While many of these decisions were difficult, they are necessary.”

JCK