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Gap Inc. is preparing a new round of redundancies
After having already announced almost 500 redundancies in September 2022, Gap Inc. is preparing to carry out another team restructure, as revealed by the Wall Street Journal. The number of redundancies has not been disclosed, although it is expected to be higher than the previous announcement. The aim is to make the company "less bureaucratic," according to sources close to the matter.
The layoffs concern employees from the San Francisco headquarters in California, but also employees from the global supply chain. According to the American media, the group -which did not respond to Reuters' request- has already started to inform those it is letting go.
As previously announced, the aim is to make savings of $300 million, the first half of which will be achieved in 2023, to "improve the quality and speed of decision making." The workforce reduction is part of this rationalisation.
The American group, owner of Gap, Old Navy, Athleta and Banana Republic, which employs around 95,000 people (80% of whom work in retail outlets), announced in March that it had recorded a larger-than-expected loss in the fourth quarter of its 2022 financial year, and a reduction in its margin due to major discounts in order to clear its winter stocks. In 2022, its sales fell by 6% to 15.6 billion dollars.
In France, Gap is operated as a franchise by the Hermione People & Brands group, but not for much longer. The French subsidiary, which is in receivership, is currently the subject of takeover offers. It remains to be seen whether the Gap will continue to operate or not.
(With Reuters)
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