Tandy Brands Accessories is to cut its number of employees by 17% as part of a company-wide restructuring to reduce costs by around US$3m a year.

As part of the changes it will let the president of its men's division and president of its women's division go.

It will also focus on key product categories, such as belts, small leather goods and gifts, bringing in new senior executives and streamlining the company's sales structure.

Tandy will also discontinue businesses and brands it said "do not meet the long-term strategic or financial performance objectives of the company".

"We are in an extremely challenging retail environment and it is imperative to have an agile corporate structure that can respond to meet today's market realities," said Rod McGeachy, president and chief executive officer.

"The organisational restructuring plan announced today is the first step in stabilising our platform to position us for profitable growth in the future."

Pre-tax charges are expected to be in the range of $550,000 to $650,000, with the majority taken in the third quarter ending 31 March.