Gap cuts 500 corporate jobs amid declining sales

Gap is to cut approximately 500 corporate jobs as it pushes to save costs amid declining sales and a slew of setbacks.

The retailer confirmed that the job cuts will be primarily at Gap's offices in San Francisco, New York and Asia.

In a memo to employees, Bob Martin, Gap’s Executive Chairman and Interim Chief Executive said: “We’ve let our operating costs increase at a faster rate than our sales, and in turn our profitability.”

The move comes after Gap terminated its partnership with Kanye West eight years early, after it was originally set to expire in 2030. West, who goes by Ye, said the retailer had "failed to meet obligations" to distribute Yeezy products at its stores by the second half of 2021 and did not create dedicated Yeezy Gap stores as promised.

Gap is also looking for a new Chief Executive following the departure of President and CEO Sonia Syngal, who stepped down in July after about two years on the job.

Sales at the company, which also owns Banana Republic, Old Navy and Athleta, are down roughly 10% compared to a year ago. Last month, the company withdrew its 2022 financial outlook, citing execution challenges and uncertain macroeconomic conditions.