San Francisco-based Gap laying off 800 employees in California
San Francisco-based Gap is laying off approximately 800 employees in the state of California, according to a WARN notice obtained by SFGATE.
In the notice, a Gap employee relations spokesperson wrote that layoff notifications commenced Thursday and will continue through early May. WARN notices are mandated by the Worker Adjustment and Retraining Notification Act to give affected workers 60 days’ notice before terminating their employment.
The impacted Gap locations include the company’s main headquarters at 2 Folsom St., the Athleta corporate headquarters at 1 Harrison St. (Gap is Athleta’s parent company) and a Fresno distribution center. Gap did not identify the number of layoffs at each location.
The 800 statewide layoffs make up a significant chunk of Gap’s recent companywide cuts; approximately 1,800 employees will be affected in total, according to Gap. People working in Gap’s international sourcing division were first notified of the layoffs April 18.
“We are taking the necessary actions to reshape Gap Inc. for the future — simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience,” interim CEO Bob Martin said in a statement provided to SFGATE on Thursday.
“I represent the collective voice of the company in expressing a sincere appreciation to every employee for the dedication, energy, and heart they have given to Gap Inc.,” Martin continued in his statement. “As we move forward, we believe these efforts will release untapped potential across our brands, allowing us to show up as a more customer focused, faster, and creative company.”
During the company’s most recent earnings calls, Martin said the job cuts are estimated to save the company about $300 million annually.
This marks the second round of major layoffs for the retailer. Last September, Gap eliminated 500 jobs at its offices in San Francisco, New York and Asia. A few months earlier, in July 2022, then-CEO Sonia Syngal abruptly stepped down after just two and a half years on the job.
Source: SFGATE
