By Patrick Hilsman
April 27 (UPI) -- Gap Inc. is planning to lay off 1,800 workers as the clothing retailer struggles to remain profitable amid stiff competition and poor sales.
"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," said Gap interim CEO Bob Martin.
Martin said the changes are "aimed at flattening the organizational structure to improve the quality and speed of decision-making."
Notices were sent out to employees being laid off from the international sourcing division on April 18 and 19. Employees being laid off from corporate headquarters will be informed Thursday and Friday, and financial division employees will be notified in May.
RELATEDThe Gap pulls Ye merchandise from shelves, shuts down e-commerce site
A filing to the Securities and Exchange Commission reveals that the layoffs will cost Gap as much as $125 million.
Gap has struggled to remain profitable with a series of crises affecting the clothing retailer's value. The company's stock value has fallen 23% over the past year.
During the quarter ending in April 2022, the company reported a net loss of $162 million, compared to reported profits of $166 million during the same quarter of 2021.
In March, Gap reported fourth-quarter losses of $273 million.
Slow sales at Old Navy, which is owned by Gap Inc., are believed to have contributed to the company's financial issues.
In July, CEO Sonia Syngal stepped down, leaving Martin, who was executive chairman of Gap's board at the time, in the position of interim CEO.
In September, the Gap cut 500 jobs, mostly from the company's corporate offices in New York and San Fransisco and from overseas offices in Asia.
In October, the company pulled Kanye West's Yeezy clothing line and shut down YeezyGap.com in the wake of antisemitic comments made by the rapper
No comments:
Post a Comment