The widespread layoffs in big tech firms are now spilling out to other industries. Clothing retailer Gap announced on Thursday that it plans to lay off 1,800 employees as part of the company’s cost-cutting efforts.
Gap first initiated job cuts in September when it announced that it would be laying off 500 workers, mostly in corporate positions. The company is now looking to streamline its operation further, with the new job cuts set to affect workers at headquarters locations, upper field positions, and employees working in leadership positions in regional stores. According to a regulatory filing from earlier this year, Gap has around 95,000 employees.
In a statement shared with CNCB, Gap’s interim CEO Bob Martin said that the company plans to save more than $300 million as a result of job costs. It also hopes to “release untapped potential” across the company’s brands, flatten the organizational structure, and make the entire operation more efficient.
“We are taking the necessary actions to reshape Gap Inc. for the future – simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience,” Martin shared in the statement.
Gap has been dealing with plummeting sales in recent periods. It recorded $4.24 billion in sales in three months that ended with January, representing a 6% decline from the same period in 2022. It also had net losses in two of the previous three years. While seeing a slight positive movement after the layoffs announcement, the company’s stock remains 17.03% down year-to-date.