Gap will lay off hundreds of employees from its corporate global workforce as part of a larger restructuring initiative, The Wall Street Journal reported.
Those with knowledge of the situation told the outlet that the restructuring is intended to minimize bureaucracy and make the company more efficient. Furthermore, the sources added that the recent layoffs will be more significant than those that took place in September — when Gap laid off nearly 500 corporate employees.
“Our goal is to flatten the organization, increase spans of control to create more robust roles and individual empowerment, and decrease layers to remove bottlenecks and make better, faster decisions,” Gap chairman and interim chief executive Bob Martin wrote to employees in a memo last week, per the WSJ.
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Gap aims to inform workers in its San Francisco headquarters about pending layoffs this week; those in the finance division will be informed in May, per the memo.
The latest round of layoffs comes about a month after the company announced $300 million in cost cuts, including trimming down layers of management.
Gap, whose family brands include Athleta, Old Navy and Banana Republic, has had a tough year between declining profits and a continued search for a full-time CEO after the departure of Sonia Syngal in July 2022 after only two years on the job.
As of Wednesday morning, Gap stock is down about 24% as compared to 12 months prior.
