Gap to cut 500 office jobs as sales sink
BI Desk || BusinessInsider
Clothing retailer Gap will cut roughly 500 office jobs as it pushes to cut costs in the face of falling sales.
The move marks the latest shake-up at the company, following the departure of its chief executive this summer after her turnaround efforts flopped, reports BBC on Wednesday.
Sales at the company, which also owns Banana Republic and Old Navy, are down roughly 10% from a year ago.
Gap confirmed job cuts at its offices in New York, San Francisco and Asia but declined to comment to the BBC.
The brand employed roughly 97,000 people at the start of the year, of which about 9% held corporate positions. That would put the cuts at about 5% of staff.
Some of the reductions in head count will come from open positions, it said.
It comes after Gap’s once celebrated partnership with Kanye West recently came to an unceremonious close.
There are increasing concerns about the health of the US economy, which has contracted in recent months.
Other retailers to announce cuts in recent weeks include Walmart, Bed Bath & Beyond and Abercrombie & Fitch.