Pedestrians walk past a Gap Inc. store in Shanghai, China.
Qilai Shen | Bloomberg | Getty Images
Gap Inc. cuts about 500 corporate jobs as the clothing retailer struggles with falling sales.
The job cuts, including job openings, will mainly occur at Gap’s offices in San Francisco, New York and Asia and affect several departments, a retailer’s representative confirmed Tuesday. The moves were first reported by the Wall Street Journal.
The San Francisco-based company has experienced a slew of setbacks, including issues with the Old Navy brand’s product range, which accounted for more than half of the company’s revenue in fiscal 2021.
And last week, Gap’s partnership with Kanye West’s company Yeezy ended after the rapper accused the company of violating the terms of their agreement. West, who goes by Ye, said Gap did not distribute Yeezy products in its stores in the second half of 2021 and did not create dedicated Yeezy Gap stores as promised.
West told TBEN he was dissatisfied with the progress in launching brick-and-mortar Yeezy stores in partnership with the retailer. The retailer later confirmed the split but said it still plans to work through its Yeezy product pipeline.
As it struggles to get sales back on track, Gap is also still looking for a new leader after CEO Sonia Syngal abruptly stepped down in July after roughly two years of service. Last month, the company withdrew its 2022 financial guidance, citing execution difficulties and uncertain macroeconomic conditions.