GAP laying off 500 corporate employees amid financial challenges
Amid the financial troubles, according to reports GAP is laying off roughly 500 corporate employees. 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.
According to Wall Street journal, the layoffs stared a few days ago and amount to roughly 5% of the Gap's 8,700 corporate employees.
The news 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, it was also announced that CEO of GAP Sonia Syngal would step down and will be replaced by an interim CEO while the company searches for a permanent leader.
Last week, American rapper Kanye West announced that he is ending his two-year-partnership with GAP because of “substantial noncompliance." Shares of the Gap slipped nearly 3% in Tuesday trading, with the stock down 50% for the year.