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Gap Laid Off 500 Employees

Gap Laid Off 500 Employees - theincap
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The Gap lays off 500 corporate workers in San Francisco and New York. As sales decline, the US apparel retailer is moving as part of a cost-cutting drive. A company spokesperson confirmed the layoffs. The San Francisco-based retailer has struggled to grow sales for several years. The company also operates the Old Navy, Banana Republic, and Athleta chains in addition to its own brands. Retailers have also been affected by the COVID-19 pandemic and supply chain disruptions. As a result, organizations face non-delivery of products on time, high prices, and high transportation costs. The article is about Gap Laid Off 500 Employees.

Gap and US rapper Kanye West broke off their partnership last week. Gap announced its collaboration with artist clothing chain Yeezy two years ago to great fanfare. According to its latest annual report, the company had about 97,000 employees last January. Nine percent of them, or about 8 thousand 700 people, work in corporate offices. Earlier, retailers such as Walmart, Best Buy, and Peloton announced layoffs. These companies also reported cost reduction initiatives due to reduced sales. New Jersey-based home furnishings retailer Bed Bath & Beyond announced 150 store closings earlier this month. In addition, the company said to reduce the number of employees by 20 percent.

Gap Interim CEO Bob Martin said in August that the company plans to cut operating expenses to boost profits. After the resignation of the company’s CEO Sonia Singhal last July, Bob Martin is taking over this role. Gap’s net sales fell 8 percent in the three months ended July 30. Separately, Gap brand sales fell by 10 percent and Old Navy by 13 percent. Sales of Old Navy, which once recorded strong sales growth, have slumped as low-income households are hurt by high inflation. However, Banana Republic’s sales increased by 9 percent and Athlete’s sales by 1 percent during this period. During this time, the company faced a loss of 49 million dollars, where Gap Inc. made a profit of 25 million 80 million dollars last year.

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