Gap Plans To Eliminate 500 Jobs: WSJ

  • Gap Inc GPS looks to slash about 500 corporate jobs in order to cut expenses.
  • The jobs are mainly at Gap's main offices in San Francisco and New York as well as in Asia, the WSJ reported, citing people familiar with the matter.
  • Also ReadKanye West's Yeezy Cuts Ties With Gap: What You Need To Know
  • "We've let our operating costs increase at a faster rate than our sales, and in turn, our profitability," the report quoted interim CEO Bob Martin in a memo to employees.
  • The company has been struggling with a slump in sales, especially in its Old Navy brand, which accounts for the majority of the company's sales.
  • The job cut follows similar moves by other retailers, including Walmart Inc WMTAbercrombie & Fitch Co ANF, and Bed Bath & Beyond Inc BBBY, as rising inflation changes spending patterns.
  • Also, Gap issued a statement on the launch of The Athleta Look, a unique styling formula, and a corresponding eight-piece performance-based capsule collection.
  • Price Action: GPS shares are trading lower by 3.68% at $9.17 on the last check Tuesday.
  • Photo Via Company
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