Last Updated on April 27, 2023 by Bitfinsider
Gap will lay off approximately 1,800 workers as part of a broader attempt to cut costs and streamline operations, the company announced Thursday.
The layoffs, which were originally disclosed on Tuesday, are more than three times the size of the 500 announced in September. According to the corporation, the layoffs will effect responsibilities at Gap’s headquarters as well as higher field positions or personnel such as regional store executives who have leadership titles outside of a headquarter office.
The layoffs come as the clothing company struggles to return to profitability as sales fall. The layoffs are expected to result in annualized savings of $300 million, according to interim CEO Bob Martin.
“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,” Martin stated.
“Among these changes are the consistent brand leadership structures we announced last month, which aim to flatten the organizational structure to improve the quality and speed of decision-making while reducing overhead expense,” he continued.
Martin claims that the layoffs will “unleash untapped potential” across Gap’s brands, which include its eponymous line, Old Navy, Banana Republic, and Athleta.
Martin stated on an earnings call in March that the company intended to reduce management layers. However, he did not specify how many posts will be eliminated at the moment.
The store has been plagued by a run of losses, inventory issues, and the lack of a permanent CEO.
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