Gap is closing 175 stores and firing a bunch of people

Gap is downsizing its staff and stores.

In a statement on Monday, the company said 175 specialty stores in North America will be closed “over the next few years.”

As many as 140 stores will be closed this fiscal year.

It will cut about 250 jobs from its headquarter workforce during this fiscal year.

In the statement, Gap president Jeff Kirwan said: “These decisions are very difficult, knowing they will affect a number of our valued employees, but we are confident they are necessary to help create a winning future for our employees, our customers and our shareholders.”

CEO Art Peck said, “Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers.”

The company expects that these actions will cost between $US140 million and $US160 million. It expects to save about $US25 million annually from next year, it said.

In after-hours trading, shares were higher but little changed.

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