Gap to lay off over 200 workers amidst sales rise

By

Obi Anyanwu

Published
Feb 28, 2017

Gap is well into its plan to turnaround its business. The company reported increases in net sales and net income in its latest financial results, and it expects to achieve an increase in comparable sales for the year. Part of Gap’s turnaround plan is job cuts.

 
Apparel News reported that Gap is cutting 216 jobs this month at its corporate office in San Francisco to streamline its operating model. Kari Shellhorn, a Gap Inc. representative, said in a statement. “We intend to make every effort to ensure that impacted employees are considered for any open positions within Gap Inc.” According to the Employment Development Department in California, the job cuts will be effective on March 31, 2017.
 
The announcement follows positive quarterly performances from the company. Gap in the fourth quarter achieved its first sales increase, due in part to its positive holiday performance. The positive fourth quarter results follows seven straight quarterly declines.

Reuters reported that the company plans to open 40 stores in 2017, including Old Navy and Athleta stores, which are focuses for the company. The Gap brand is also slated to take over the Toys R’ Us store in Times Square in New York City this year.