Clothing company that laid off 1,800 people... shudder

GAP, a famous U.S. clothing company, announced on the 27th (local time) that it plans to lay off 1,800 employees as part of a corporate restructuring aimed at cutting costs and improving management. According to the Wall Street Journal (WSJ) and CNBC, the scale of this restructuring is more than three times the 500 employees laid off last September.

Interim CEO Bob Martin issued a statement on the day, saying, "We are taking the necessary steps to restructure the company for Gap's future," and added, "We will simplify and optimize our operating model and enhance creativity."

Gap's decision to proceed with larger-scale layoffs after just over half a year appears to be due to continuing losses. In the most recent quarter ending in late January, Gap recorded a net loss of $273 million, and revenue also fell 6% compared to the same period last year. Gap has posted annual net losses for three consecutive years, from 2020 to last year.