Clothing retailer Gap is set to cut over 500 corporate jobs in an attempt to reduce costs.
The company claims that the decision will help it reach profitability again.
Gap claims that it will be able to save $300M during 2023 as a result of these changes.
- Gap shares dropped about 6% on Tuesday. The stock has fallen more than 16% this year.
- Impacted employees in Gap’s international sourcing division were notified about the latest cuts on April 18, while those at its San Francisco headquarters will be notified this week, the person said.
- In the three months that ended Jan. 28, Gap posted $4.24B in sales but reported a net loss of $273M, or 75 cents a share.
- It managed to turn an annual net profit in 2021 but reported net losses in both 2020 and 2022.
- As of Jan. 28, Gap employed about 95,000 staff members, 81% of which work in retail locations.
