dashboard



Gap is laying off 500 corporate employees as challenges mount

Gap is laying off 500 corporate employees as challenges mount



Investment strategist: Retailers are talking about 'unwanted inventory levels'ReplayMore Videos ... (16 Videos)Investment strategist: Retailers are talking about 'unwanted inventory levels'Is a recession coming? Look to corporate earningsYou can now edit and unsend iMessages. Here's how it worksTearful testimony in latest Alex Jones trial: "It makes me angry because I'm not a liar"Romans: There is a move afoot here for better quality of livingPatagonia founder says 'Earth is now our only shareholder'20 hours of negotiations end with tentative deal to avoid rail strike4 ways Twitter and Musk court battle could end, explainedSenator asks Twitter whistleblower about alleged Chinese spying. See his responseHere's how Elon Musk calculated the number of bots on TwitterThis is what Chevron's CEO thinks about climate change Hear why 15,000 nurses decided to walk off the jobSee moment Blue Origin rocket catches fire during launchBob Iger: Disney buying Twitter 'would've been irresponsible'CEO calls out misleading studies on efficacy of working from homeSee Apple's new iPhone 14New York (CNN Business)Roughly 500 corporate jobs are being eliminated at the Gap, adding to the problems that the beleaguered retailer is currently facing.

The cuts include a mix of layoffs and open roles being axed at the company's corporate offices in New York, San Francisco and across Asia, according to a person familiar with the situation. The Wall Street Journal, which first reported the news, said the layoffs started in recent days and amount to roughly 5% of the Gap's 8,700 corporate employees. News of the layoffs comes a few months after the Gap reported weak first quarter earnings, with sales sliding at its flagship brand and its more popular Old Navy chain. In July, the company announced that CEO Sonia Syngal would step down after less than three years. She will be replaced by an interim CEO while the company searches for a permanent leader.Neil Saunders, managing director at GlobalData, wrote in an analyst note that the job cuts "make sense" because of the company's slowing sales and shrinking retail footprint. He added that Old Navy is no longer as strong as it had been in boosting the Gap's bottom line. "Traditionally, Gap could rely on its Old Navy banner to cover some of the sluggishness in other parts of the business. However, with the division suffering from supply chain issues and softening demand from the family segment, the whole company is very exposed and needs to take tougher actions to appease investors and present better numbers over the second half of the year," Saunders wrote. Read MoreLast week, Kanye West announced he was terminating his two-year-old partnership with the Gap because of "substantial noncompliance." He alleged the retailer breached their partnership by not opening branded Yeezy stores and distributing his apparel as originally planned, among other issues.Gap (GPS) confirmed that it was winding down the partnership in an internal company email that was seen by CNN Business.Shares of the Gap slipped nearly 3% in Tuesday trading, with the stock down 50% for the year.


Click Here To Get Funded!