US department store retailer Saks is to slash 1,100 corporate support and store jobs - around 9% of the total company workforce - in a bid to cut costs amid "the deteriorating economic environment."

Saks has also axed performance-based wage rises for its entire workforce in 2009, and suspended benefits in its pension plan.

The retailer said the majority of the jobs would go by the end of this month. It is looking at severance charges of $9m.

Steve Sadove, chairman and CEO said: "The sustained downturn in the economy and the decline in luxury consumer demand necessitates that we take appropriate and decisive measures to position the company for this new operating environment.

"The cost and capital expenditure reductions are structured to minimise the impact on our customers, and the reduction in inventory receipts is reflective of the decrease in consumer demand.

"Each of our actions will benefit 2009 and should better position the company for the future, when economic conditions improve."

The company also plans to cut costs in procurement, information technology, distribution and logistics, travel, and marketing.

In total, it expects to save between $50m and $60m in 2009.

Saks has also halved its planned capital expenditures for fiscal 2009 to $60m.

The cuts are in addition to the 1,700 jobs that will be lost when it closes its Club Libby Lu business.