Gap Inc (NYSE: GPS) looks to slash about 500 corporate jobs in order to cut expenses.
The jobs are mainly at Gap's main offices in San Francisco and New York as well as in Asia, the WSJ reported, citing people familiar with the matter.
"We've let our operating costs increase at a faster rate than our sales, and in turn, our profitability," the report quoted interim CEO Bob Martin in a memo to employees.
The company has been struggling with a slump in sales, especially in its Old Navy brand, which accounts for the majority of the company's sales.
The job cut follows similar moves by other retailers, including Walmart Inc (NYSE: WMT), Abercrombie & Fitch Co (NYSE: ANF), and Bed Bath & Beyond Inc (NASDAQ: BBBY), as rising inflation changes spending patterns.
Also, Gap issued a statement on the launch of The Athleta Look, a unique styling formula, and a corresponding eight-piece performance-based capsule collection.
Price Action: GPS shares are trading lower by 3.68% at $9.17 on the last check Tuesday.
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