Gap Inc. announced Thursday that it will cut about 1,800 jobs in a second round of layoffs, joining a string of large U.S. companies that have been downsizing in earnest as high inflation eats into consumers’ wallets. Joined the.
Shares of Banana Republic’s parent company rose about 2% in early trading.
In September, Gap laid off about 500 corporate employees in various departments as it struggled to secure profits and battled sluggish sales. As of Jan. 28, the apparel chain had about 95,000 employees, according to regulatory filings.
From tech giants like Facebook parent company Meta Platforms Inc and Alphabet Inc, to Clorox Co.
Gap said it expects to incur total pre-tax costs of about $100 million to $120 million as a result of the job cuts. First half of 2023 ends.
The Wall Street Journal first reported on the new job cuts earlier this week.
In March, Gap posted a higher-than-expected fourth-quarter loss and lower-than-expected 2023 revenue. This was hit by slowing demand for apparel and challenges with older inventory for Old Navy brands.
Consumers, especially low- and middle-income consumers, are curbing their spending on non-essential items, impacting apparel sales as all four Gap brands experienced lower sales in the fourth quarter. I’m here.
The company is in the midst of a CEO change after Sonia Singhal stepped down last year, and is now led on an interim basis by Executive Chairman Bob Martin.
Reported by Ann Florentina Gunanaraja Sekhar and Ananya Mariam Rajesh of Bengaluru. Edited by Savio D’Souza, Nivedita Bhattacharjee and Devika Syamnath
