Gap is laying off 1,800 corporate employees as the struggling clothing chain aims to cut costs amid a sales slump
ByANNE D'INNOCENZIO AP Retail Writer
The Gap logo is displayed at a Gap store on April 25, 2023 in Los Angeles.
Mario Tama/Getty Images
NEW YORK -- Gap is laying off 1,800 corporate workers as the struggling chain cuts costs in a bid to become more nimble.
There have been numerous job cuts at U.S. corporations this year like Amazon and McDonald's that have hit particularly hard for white collar workers as the economy slows.
In a regulatory filing Thursday, the San Francisco-based chain, which also owns Banana Republic, Old Navy and Athleta, said employees in its headquarters as well as upper field positions such as regional store managers, will be impacted.
Interim CEO Bob Martin said the layoffs will lead to $300 million in annualized savings. The layoffs should be completed by the end of July, according to the regulatory filing.
“We are taking the necessary actions to reshape Gap Inc. for the future – simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience, " said Martin in a prepared statement.
As of January 28, The Gap Inc. employed roughly 95,000 employees, about 9% worked in headquarters locations, according to its annual report.
Gap's shares rose nearly 1% or 8 cents, to $9.42 Thursday.
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