Gap also adjusts and plans 500 layoffs to “reduce costs”

Gap is also adjusted. The American fashion distribution company, one of the largest in its sector by turnover, will undertake an adjustment plan that involves laying off up to nearly five hundred people from its office staff, according to The Wall Street Journal.

The company will reduce the staff of its offices in San Francisco, New York and Asia with the aim of “reducing costs in the face of declining sales and profits”. In addition, the company has also eliminated a large part of the job offers that it had published. The group’s shares accumulate a decline of 2.6% around noon local time.

The company is in the process of adjusting after that in the second trimester of exercise will register a drop in sales of 8% and some red numbers of 49 million dollarscompared to a profit of 258 million dollars in the same period a year ago.

Gap also withdrew its original year-end forecasts due to “macroeconomic uncertainty.” “We are taking steps to reduce inventory and adapt to changing needs of our consumers while we strengthen our balance sheet”, explained then Katrina O’Connell, vice president and financial director of the company.

After the publication of resultsGap noted that it expects air transport costs to normalize in the second half of 2022 and that from the spring of next year its inventory levels are in line with demand.

In addition, Gap is also without a first sword since last July Sonia Sygnal, CEO since the beginning of 2020, will leave the company. Company CEO Bob Martin has taken over Sygnal’s duties on an interim basis.

Gap is not the only fashion company that has launched an adjustment plan in recent months. At the beginning of September, the American company VF, owner of The North Face or Vans, announced that it would lay off up to 700 employees and paralyze the processes of 300 positions.

This move came shortly after PVH, owner of Calvin Klein and Tommy Hilfiger, will also explain that it would reduce staff costs by 10%. until the end of 2023 with the goal of saving up to one hundred million dollars.

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