Gap set to axe 1,800 jobs to save £239 million
Global retailer Gap plans to axe 1,800 jobs in order to save approximately £239 million ($300 million) and 'reshape company for the future'.
Interim CEO Bobby Martin said the cuts will "release untapped potential" across Gap Inc.'s brands, including Gap, Old Navy, Banana Republic, and Athleta.
Martin added: "We are taking the necessary actions to reshape Gap Inc. for the future - simplifying and optimising our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience."
"These changes include the consistent brand leadership structures we announced last month aimed at flattening the organisational structure to improve the quality and speed of decision-making, while in turn reducing overhead expense."
The latest round of job cuts is over three times larger than the 500 layoffs announced in September 2022.
Martin added: "This means saying goodbye to friends and team members we care about, and I represent the collective voice of the company in expressing a sincere appreciation to every employee for the dedication, energy, and heart they have given to Gap Inc."
This follows a drop in sales for the fourth quarter and full year ending 28 January 2023. For the fourth quarter, net sales dropped 6% to £3.5 billion ($4.24 billion). Store sales decreased 3% and online sales were down 10%, representing 41% of total sales.