: Gap discloses plan to lay off 1,800 employees as it looks to decrease management layers
San Francisco-based Gap Inc. GPS disclosed Thursday that it was laying off 1,800 employees from its headquarters and its “upper field” workforce as part of a restructuring plan that includes simplifying its operations and decreasing management layers. The apparel retailer’s stock gained 0.6% in premarket trading. The layoffs represent 1.9% of the 95,000 employees that company had as of Jan. 28. Gap said it expects to incur about $100 million to $120 million in costs as a result of the restructuring, including $75 million to $85 million in employee-related costs. The company expects the planned job cuts to completed by the end of the first half of fiscal 2023. The disclosure comes after The Wall Street Journal reported earlier this week that Gap was planning to lay off “hundreds of corporate jobs.” The stock has dropped 17.2% year to date through Wednesday, while the SPDR S&P Retail exchange-traded fund XRT has edged up 0.4% and the S&P 500 SPX has gained 5.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.