Gap Inc (NYSE:GPS) is reportedly set to eliminate hundreds of corporate jobs from its global workforce, The Wall Street Journal said Tuesday, citing people familiar with the situation.
The move is said to be part of a restructuring aimed at making the company more nimble and less bureaucratic.
The report states that one of its sources told them the current round of layoffs is set to be bigger than in September when Gap cut approximately 500 corporate positions, mostly at its main offices in San Francisco and New York — part of efforts to save about $250 million annually.
Furthermore, leaders of each of the company's brands are said to have been reviewing the business in order to strip out layers of management to speed up decision-making.
A memo seen by the WSJ from Gap Chairman and interim Chief Executive Bob Martin to employees last week says that the company's goal is to "flatten the organization, increase spans of control to create more robust roles and individual empowerment, and decrease layers to remove bottlenecks and make better, faster decisions."
Gap shares are down more than 6% Tuesday, adding to its YTD declines, which currently stand at -16.5%.