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Gap said Thursday that it will lay off 1,800 employees as it seeks to rein in costs amid the uncertain economic environment.
The cuts, which will affect workers at the company's headquarters and upper field workforce, are part of a restructuring plan that will help the company save millions in operating costs, according to a filing with the Securities and Exchange Commission (SEC).
In March, the company, whose portfolio includes Old Navy, Gap, Banana Republic, and Athleta brands, announced it was taking several actions to "simplify and optimize its operating model and structure," including decreasing management layers, according to the filing.
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The company also said it was working to create "a consistent organizational structure across all four brands."
The company expects the actions announced in March to further simplify and optimize operations, including the reduction of its workforce, will result in annualized pre-tax savings of approximately $300 million.
The Gap logo is seen on the front of the company’s store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier (Reuters Photos)
Representatives for Gap did not immediately respond to FOX Business' request for comment on the latest job cuts.
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In September, the company eliminated 500 corporate jobs in San Francisco and New York. The cuts came shortly after Gap interim CEO Bob Martin said in August that the company plans to reduce operating costs to increase profitability.
Gap reported that net sales fell 6% to $15.62 billion for fiscal year 2022, which ended on Jan. 28. Sales at stores open for at least a year were also down 7% year over year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GPS | GAP INC. | 9.41 | +0.09 | +0.91% |
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Martin took the helm as the company looks to fill the vacancy left when Gap CEO Sonia Syngal stepped down in July.
Gap joined a growing list of companies that have trimmed their workforces in recent months as economic uncertainty weighs on operations. The move follows Wall Street titans including Goldman Sachs and tech giants such as Amazon and Google parent Alphabet.
The Associated Press contributed to this report.