Gap Inc. Will Lay Off 1,800 Corporate Workers
Gap Inc. is the latest retailer to announce a new round of jobs cuts.
A customer enters a Gap store on March 04, 2021 in Corte Madera, Calif.
Justin Sullivan / Getty Images
Gap Inc. is the latest retailer to announce a new round of jobs cuts.
The apparel retailer will cut 1,800 roles from its global corporate workforce as it undergoes a restructuring process, Gap Inc. announced Thursday in a regulatory filing with the SEC. These restructuring plan is estimated to yield between $100 million to $120 million in pre-tax costs.
The Wall Street Journal initially reported the news of the layoffs, citing people familiar with the situation.
Gap leadership in March outlined a restructuring plan, which included reducing layers of management, to simplify its structure. These measures were estimated to result in $300 million in annualized savings. Gap Inc. owns the Old Navy, Gap, Banana Republic and Athleta brands.
“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,” Gap Inc. executive chairman and interim CEO Bob Martin said in a statement. “As we move forward, we believe these efforts will release untapped potential across our brands, allowing us to show up as a more customer focused, faster, and creative company.”
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These new layoffs are significantly larger than the cuts from September, when Gap Inc. said it would eliminate 500 corporate roles. At the time, the job cuts mostly affected the retailer’s offices in San Fransisco and New York, as well as in Asia, and represented a combination of layoffs and the elimination of certain open roles.
The news also comes on the heels of a rough year for the apparel company, which currently in the midst of an executive search after former CEO Sonia Syngal stepped down from her role in July.
Gap Inc. had about 95,000 employees as of January 2023, according to a regulatory filing.
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