Gap is laying off 500 corporate workers in San Francisco, New York, as it seeks to cut spending


NEW YORK — Gap is cutting 500 jobs at businesses in San Francisco and New York as it seeks to cut spending amid sluggish sales, a company spokesperson confirmed on Tuesday.

The job cuts follow years of struggles at the San Francisco-based retailer, which operates stores under its namesake brand as well as Old Navy, Banana Republic and Athleta. But the pandemic as well as soaring supply chain costs have taken an even heavier financial toll on the retailer. And last week, Gap and Kanye West ended their partnership to distribute the rapper’s clothing line under the Yeezy name. The partnership was announced two years ago to much fanfare.

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As of January 29, the company had approximately 97,000 employees; 9% of them, or about 8,700, work in corporate sites.

The news comes as a slew of other retailers have downsized, including Walmart, Best Buy and Peloton. Retailer of articles for the home Bed Bath & Beyond, based in Union, New Jersey, announced earlier this month that it would close about 150 of its namesake stores and reduce its workforce by 20%.

Gap Executive Chairman Bob Martin, who is also the interim CEO of Gap Inc., noted in August that the company plans to cut operating costs to boost profitability. Martin chairs the helm as the company seeks to fill the position left vacant when Gap CEO Sonia Syngal stepped down in July.

For the three months ended July 30, Gap reported an 8% decline in net sales. By brand, Gap saw a 10% decline, while Old Navy, once a bright spot, saw a 13% drop as the division caters to low-income shoppers who have been hit by surging food prices. ‘inflation. Banana Republic’s sales increased by 9% and those of Athletica by 1%. The company posted a loss of $49 million in the quarter, compared with a profit of $258 million a year ago.

News of the Gap layoffs was first reported by The Wall Street Journal.

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