High street fashion retailer Gap is to cut 1,800 headquarters and upper field positions across its global business, in a bid to simplify its operating model.
According to the retailer, it hopes the move would help flatten the organisation and corporate structure to “improve the quality and speed of decision-making”.
The retailer is also understood to have made impacted employees aware last week of job cuts.
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In a statement, Gap executive chairman and interim CEO Bob Martin said: “We are taking the necessary actions to reshape Gap for the future – simplifying and optimising our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience.”
“We are eliminating approximately 1800 headquarters and upper field positions. This means saying goodbye to friends and team members we care about, and I represent the collective voice of the company in expressing a sincere appreciation to every employee for the dedication, energy, and heart they have given to Gap”.
The raft of job cuts follows the 500 corporate redundancies the business made in September last year, in a bid to save $250 million (£200 million) annually.
In its most recent quarter, the group reported a 6% drop in net sales with declines across all brand divisions. Quarterly losses were up from $16 million (£12.85 million) last year to $263 million (£211 million).
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