Gap to close 175 North American stores
Gap will close 175 stores in North America, leaving about 800 open, and will layoff 250 employees this year.
Gap said Monday it will also close a “limited number” of Gap stores in Europe over the next few years.
Store closures will only affect Gap stores, and not its other brands — Banana Republic, Old Navy, Intermix and Athleta — or its outlet and factory stores, and the brand will continue run about 1,600 Gap stores worldwide.
The company said the layoffs will mainly affect employees at its San Francisco headquarters. As of January, Gap employed about 141,000 people globally.
The brand has been struggling for a few years now. Gap reported dismal sales for the first quarter of 2015, down 10% from last year. It recently also shut down the Piperlime line.
The company announced the store closures and layoffs as part of an effort to cut costs and boost sales. It estimates the restructuring will cost the company about $150 million.
Gap executives will give more details on the changes in an investor meeting on Tuesday at 9 a.m. PST.