Gap Inc. will eliminate about 1,800 positions as part of a broader restructuring plan that aims to speed decision-making and reduce overhead expense, the retailer said Thursday.
(Bloomberg) — Gap Inc. will eliminate about 1,800 positions as part of a broader restructuring plan that aims to speed decision-making and reduce overhead expense, the retailer said Thursday.
The roles will be concentrated at the company’s San Francisco headquarters and in upper field positions, interim Chief Executive Officer Bobby Martin said in a statement. The new round of job cuts was reported earlier this week without specifics on the number of employees affected.
The cuts are in addition to the 500 corporate jobs that Gap eliminated in September. Gap had 95,000 employees as of the end of January.
Over the last year, the company has struggled with sales declines, bloated inventories, the end of a partnership with rapper Ye and a monthslong search for a permanent CEO. Gap is working to simplify its operating model and flatten its organizational structure with the goal of saving $300 million a year.
“We believe these efforts will release untapped potential across our brands, allowing us to show up as a more customer focused, faster, and creative company,” Martin said.
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