Gap Cuts 500 Corporate Jobs

Shares of Gap (NYSE-GPS) are down after they announced the cutting of 500 jobs.

The clothing company has been struggling with declining sales and the job cut looks to be a result. 

Gap was under fire recently when Kanye (Ye) West accused the company of falling short of their agreement with Yeezy. “Ye said Gap failed to distribute Yeezy products at its stores by the second half of 2021 and did not create dedicated Yeezy Gap stores as promised” (CNBC).

This isn’t the only issue the company has faced lately. According to CNBC, another setback includes “issues with the product assortment at its Old Navy brand, which accounted for more than half the company’s sales in its fiscal 2021.” 

Old Navy, owned by Gap, also took a hit, and saw a 13% drop in net sales during a 3-month period which ended in July. Gap itself dropped 8%.

Gap is not the only retailer that scaled back its number of staffers. Walmart, Best Buy and Peloton are in the same boat. 

Only time will tell if Gap and other struggling retailers can survive these tough times.