Saks Fires 1,100 Workers in Stores, Corporate

Fancy-schmancy retailer Saks is eliminating 1,100 jobs, and taking other steps to cut costs by up to $60 million in 2009, as the economic meltdown devastates the retail sector.

The eliminated jobs in corporate support and store positions amount to about 9% of total headcount. These cuts follow the snobby retailer’s announcement in November that it was discontinuing its Club Libby Lu business, which employed about 1,700 associates.

Saks is also eliminating merit-based wage increases in 2009, because who needs merit? It’s also suspending matching contributions to the company’s 401(k) plan for at least one year, because who needs to eat after 65? And it’s and suspending benefit accruals for associates who remain in the company’s pension plan.

Saks said the expense reductions are structured to minimize the impact on customers. Its wealthy, wealthy customers.

The company is also cutting some costs in the areas of procurement, information technology, distribution & logistics, travel, and marketing.