In March, the US clothing group Gap Inc. announced its next package of reforms in view of the persistently weak business figures. On Thursday, the parent company of the Gap, Old Navy, Banana Republic and Athleta brands specified those plans.
As part of the targeted streamlining of the organization, about 1,800 jobs would be cut, Gap said in a letter to the U.S. Securities and Exchange Commission (SEC). Since the group has expressly set itself the goal of creating flatter hierarchies and shorter decision-making paths in addition to savings, the cuts that have now been announced relate to positions in management and administrative functions.
The company estimated the one-time costs for the job cuts, which are to be completed in the first half of the current fiscal year, at around 100 to 120 million US dollars (91 to 109 million euros). Overall, the group hopes that the planned measures will result in annual savings of around 300 million US dollars. Half of this is to be realized in the current financial year.