Gap Inc. has announced plans to lay off approximately 1,800 employees, more than three times the number of layoffs it announced last September, as part of its efforts to reduce costs and streamline operations. The cuts will affect roles at the company's headquarters and upper field positions and are expected to result in annual savings of $300 million, with half of that expected in 2023.
The layoffs are part of Gap's strategy to reshape the company for the future, simplify its operating model, and optimize its brand leadership structures. The move is also expected to "release untapped potential" across Gap's brands. Gap's stock rose by half a percentage point on the news. The layoffs are expected to be completed by the end of July and are estimated to cost the company $100 million to $120 million in aggregate pretax costs.
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