SAN FRANCISCO (KRON) — San Francisco-based retail chain Gap Inc. cut 1,800 corporate jobs on Thursday, amid an ongoing sales slump. Earlier this week, it was reported that the company was preparing to eliminate hundreds of corporate jobs from its global workforce in the Wall Street Journal.
The job cuts are part of a restructuring aimed at making the company more nimble and “less bureaucratic,” the Journal reports.
The last time that Gap made significant cuts to its workforce was back in September when it cut 500 corporate jobs in an effort to reduce expenses amid languishing sales. September’s cuts were primarily at its headquarters in San Francisco and in New York. Thursdays cuts are roughly three times that number.
The current round of cuts will be larger, according to the WSJ. Layoff notifications began going out on April 18, the Journal said. Employees at the SF headquarters are expected to start being notified this week, the report also said.
In a regulatory filing Thursday, the company said the layoffs would impact employees at the SF and New York offices, as well as field positions such as regional store managers. The layoffs will lead to $300 million in annual savings, according to executive chairman and interim CEO Bob Martin.
Gap has been struggling with a sales slump for years despite numerous initiatives to fix the business through a revolving list of executives. The pandemic and surging supply chain costs have exacerbated financial conditions at The Gap, in addition to other disruptions.
Last fall, Gap and Kanye West abruptly ended a partnership to distribute the rap artist’s Yeezy clothing line. The partnership was announced two years ago with much fanfare.
The layoffs are expected to be complete by the end of July.
Gap Inc. is the parent company to a number of brands including Gap, Old Navy, Banana Republic and Athleta.
Earlier on Thursday, layoffs were announced at cloud storage company Dropbox and ride-share company Lyft.
The Associated Press contributed to this report.