Despite efforts to revitalize the clothing and accessories brand, Gap, along with high-end Banana Republic, discount-oriented Old Navy, and athleisure-focused Athleta, of course, saw 500 customers this week. Company employees are laid off, and both sales and profits are sluggish, and they move to cut costs.
The work will be primarily in Gap’s headquarters in San Francisco and New York, as well as in Asia, a person familiar with the matter told The Wall Street Journal. The company has laid off staff and eliminated positions currently open in various departments. In recent days, some employees have been notified of layoffs.
The layoffs ranged from $10 Old Navy jeans and $5 sunglasses to BR Heritage $500+ branded sweaters.
Fierce competition from fast fashion clothing lines such as H&M, Zara and Shein, still low mall foot traffic, rising labor and other costs, logistical challenges and most importantly, fickle consumers We tend to switch styles and brands quickly based on the latest trends on Tik-Tok.
Sales of Old Navy are also sluggish
Gap executive chairman and interim CEO Bob Martin announced the layoffs in a memo to employees on Tuesday, stating: In copies reviewed by journals.
Gap’s struggles are nothing new: The company has endured years of sluggish sales for its flagship brand, Gap, and more recently, problems with its Old Navy chain, which accounts for more than half of its total. Earnings.
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The pandemic and closures of hundreds of brick-and-mortar stores, many in shopping malls, and clothing overstocks that consumers (especially younger generations) have downplayed in favor of other brands have cut Gap’s pain over the past two years. It made it even worse.
TheStreet recommends: Consumer Trends Benefit Gap
Old Navy’s sales this year took a hit after an attempt to make clothing sizes more comprehensive backfired, leaving it with a surplus.The company is looking for a permanent CEO After Sonia Singhal’s resignation in July.
The company last week Announces end of partnership with Kanye West Making clothes under the Yeezy Gap label after West accused the company of violating his 10-year contract.
Other retailers are also cutting costs and hiring
Gap’s job cuts follow recent corporate layoffs at other retailers, including Walmart (WMT) Abercrombie & Fitch, Stitch Fix (SFIX) In addition, Bed Bath & Beyond (bbee) says plans to downsize corporate ranks amid severe sales slump.
Founded in San Francisco in 1969 as a menswear store selling Levi’s jeans and records, Gap had about 8,700 employees at its headquarters as of January 29, according to its latest annual report. increase. In total, the company had 97,000 employees, most of whom were hourly workers in stores.
The Gap Stores, Inc. went public in 1976, selling 1.2 million shares at $18 a share. The company’s stock price ranged from $45 to $50 when he was at the height of his popularity in the early 2000s.
At the last check, Gap stock was at $9.29. The company’s stock has fallen about 60% over the past year through Monday’s close.
https://www.thestreet.com/investing/gap-lays-off-workers-as-consumers-snub-its-once-popular-brands Gap lays off workers as consumers shy away from once-popular brands