(News Bulletin 247) – The American ready-to-wear group Gap announced Thursday its intention to cut around 1,800 jobs as part of a restructuring plan put in place to simplify its operating model.
This plan – which primarily targets its head office and the upper categories of its organization chart – should make it possible to generate annual savings of around $300 million.
Before that, the program will result in the recognition of costs of between 100 and 120 million dollars, including 75-85 million in compensation for employees who will be laid off.
The remaining 25-35 million are associated with expenses related to the signing of contracts with consulting firms, as well as other associated costs.
In its last quarterly publication last month, Gap said it wanted to reduce the number of layers of management in order to improve its decision-making.
These job cuts are expected to be finalized by the end of the fiscal year, expected in January 2024.
On the New York Stock Exchange, Gap shares rose 1% on Thursday morning following this announcement.
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