The clothing retailer, which also owns Banana Republic and Old Navy, hasas shoppers switch to trendier or cheaper brands. On Thursday, it reported a net loss of $273 million for the last three months of 2022 after group sales fell 6%.
Gap, which is without a permanent CEO, estimated that it will save $300 million by"increasing spans of control and decreasing management layers." As part of these changes, the company said it will eliminate the role of chief growth officer. Gap also announced that the CEO of its athleticwear brand Athleta will leave immediately, while its chief people officer will step down at the end of the year. Both will be replaced, however.
Gap's decision to streamline its management structure echoes a trend in the wider corporate world, where companies are laying off workers regarded as an unnecessary expense.
definitely a groan gap in there.