Gap Inc. to lay off 500 employees in SF, New York and Asia

Gap Inc. is laying off 500 mostly corporate employees at its San Francisco headquarters, as well as in New York and Asia, as well as halting hiring for a number of currently open positions.

The Wall Street Journal first reported the story and a Gap representative confirmed those details in an email but did not provide further comment. Some workers had already been notified, although it was unclear when the cuts would take place.

At the end of January, Gap employed around 97,000 people, mostly in outlets with 8,730 people, or around 9%, working in its headquarters.

The cuts come after the company’s second quarter earnings report last month showed net sales were down 8% from the same period last year as store sales fell 10%. % compared to the same quarter last year and the company posting a loss of $49 million in the period.

High inflation in everyday goods, from gasoline to groceries, has weighed on spending for many consumers. Meanwhile, the pandemic created a shift as shoppers spent more time at home and less in stores shopping casually.

The company’s online sales were also down 6% in the second quarter from a year ago, representing about a third of its total net sales.

The Gap isn’t alone in recently making major workforce reductions, as businesses continue to prepare for a long-planned downtown economy by cutting budgets and staff. Other retailers, including Walmart and Abercrombie & Fitch, have recently made cuts. Another San Francisco company, Twilio, recently cut 800 people from its payroll, or about 11% of its staff.

Gap Inc. also owns Old Navy, Banana Republic and Athletica. No WARN report has been filed with the California Employment Development Department. Notices must be filed by law when layoffs of a certain size occur in California.

The company is also still looking for a replacement for former president and CEO Sonia Syngal, who took the top job just as the pandemic hit in March 2020, to step down for two years. later. Bob Martin, board member and executive chairman, stepped into the role of interim CEO.

Shares of the company, which opened at $9.47 per share on Tuesday, had fallen to $9.12 per share shortly after 10 a.m., well off their level last year in May during a high of five years at over $35 a share.

Chase DiFeliciantonio is a writer for the San Francisco Chronicle. Email: [email protected]: @ChaseDiFelice

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