Gap Inc., the operator of Gap, Old Navy, Banana Republic and Athleta brands, says it plans to cut about 500 jobs at its corporate offices as part of a larger move to reduce expenses and drive sales growth. Overall, Gap Inc. plans to eliminate 1,000 positions by the end of 2017. In addition to layoffs, the company said it would outsource certain technology and supply-chain jobs to lower-cost locations outside the United States over time. The announcement comes as Gap Inc.
The apparel giant Gap Inc. is laying off approximately 500 corporate employees as it battles dwindling sales.
The job cutbacks, which affect several departments and include vacant jobs, would mostly affect Gap’s operations in San Francisco, New York, and Asia, a spokeswoman for the store said on Tuesday. The Wall Street Journal broke the news of the changes first.
A number of setbacks have been suffered by the San Francisco-based firm, including problems with the product selection at its Old Navy brand, which generated more than half of the company’s revenues in its fiscal 2021.
And last week, Kanye West, also known as Ye, said that his brand Yeezy would no longer work with Gap because, in his words, the shop had violated the terms of their contract. Ye said that Gap broke its commitment to develop dedicated Yeezy Gap stores and failed to supply Yeezy items at its locations by the second half of 2021.
He wasn’t happy with how the debut of the real Yeezy boutiques in collaboration with the retailer was going. Later, Gap acknowledged the interruption but insisted that it still intended to finish the Yeezy product line. In early July, Gap announced plans to close 200 underperforming stores around the world.
This comes after investors found out about a steep decline in sales growth, from 11 percent to 5 percent between 2018 and 2019 respectively.