Gap’s massive job cuts will save $300 million
Gap said Thursday that it will lay off 1
By Nathaniel Meyersohn, CNN
Gap said Thursday that it will lay off 1,800 employees as the struggling retailer looks to cut costs.
The layoffs will impact the company’s corporate workers. As of January, Gap had around 95,000 employees globally, and 9% of them were corporate staff.
Gap, which also owns Old Navy, Banana Republic and Athleta, said the cuts will result in around $300 million in annual savings for the company.
It’s Gap’s second round of job cuts in recent months. In September, Gap slashed roughly 500 corporate jobs.
The company has faced several challenges, including rising competition and the end of a clothing partnership with Ye, formerly known as Kanye West. (The partnership ended shortly before West’s series of anti-Semitic comments last year.)
Gap continues to operate without a permanent leader after its previous CEO stepped down in July. Over the past year, the company’s stock has dropped 23%.
Dozens of major companies have cut jobs in recent months, including Tyson Foods, 3M and Lyft in April.
The slew of widely publicized layoffs comes as the job market begins to slow, following months of historic post-pandemic growth. US employers added 236,000 jobs in March, below expectations — and a sign that the Federal Reserve’s yearlong rate-hiking campaign to chill inflation is now also cooling the labor market.
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