Apparel retailer Gap announced on Thursday that it will lay off 1,800 employees as it looks to cut costs amid weak sales and excess inventory.
The San Francisco-based chain said in a regulatory filing that employees in its San Francisco and New York offices, as well as upper field positions such as regional store managers, will be impacted.
Gap, which also owns Old Navy, Banana Republic, and Athleta, said the layoffs will lead to around $300 million in annual savings for the company. The layoffs should be completed by the end of July, according to the regulatory filing.
“We are taking the necessary actions to reshape Gap Inc. for the future—simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience,” said executive chairman and interim CEO Bob Martin, in a prepared statement….