Gap Inc. is laying off at least 500 corporate jobs due to a decline in sales.
The layoffs began in the last few days and equate to about 5% of Gap’s 8,700 corporate employees.
Gap, which also owns Banana Republic and Old Navy, confirmed job cuts at its offices in New York, San Francisco, and Asia.
News of the layoffs comes a few months after the Gap reported disappointing Q1 earnings, with sales dipping roughly 10% from a year ago.
Gap Inc. shares dipped by almost 3% on Tuesday, with the stock down 50% for the year.
In July, Gap announced that its CEO, Sonia Syngal, would be replaced after three years in her position.
An interim replacement will step in as the company searches for a new CEO.
Gap isn’t the only corporation cutting down costs and laying off employees…
Walmart, FedEx, Bed Bath & Beyond, and Abercrombie & Fitch announced recently they will also be laying off employees.
FedEx’s CEO thinks we’re heading towards a global recession. (Technically speaking, we are already in one.)
The company recently reported disappointing earnings, blaming reduced demand and dire economic conditions.
FedEx stock tanked by 21.4% on September 16th. The company expects business conditions to further weaken in Q2.
FedEx plans to stay afloat and reduce costs by closing 90 retail stores, trimming hours, and cutting down on air travel and flights.
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