Gap, a clothing company, will eliminate about 500 office positions as it works to reduce expenses in the wake of declining sales.
This change comes after the company’s chief executive left in the summer after her efforts to turn around the business failed.
The company’s sales are down about 10% from a year ago. It also owns Banana Republic and Old Navy.
While acknowledging layoffs in its operations in Asia, New York, and San Francisco, Gap declined to respond to the BBC.
At the beginning of the year, the company employed about 97,000 individuals, of whom 9% had corporate roles. Thus, around 5% of the workers would have been laid off.
According to the statement, some of the head count reductions will result from open positions.
It follows the recent abrupt end of Gap’s once-celebrated collaboration with Kanye West.
Concerns about the state of the US economy, which has shrunk in recent months, are growing.
In recent weeks, companies like Walmart, Bed Bath & Beyond, and Abercrombie & Fitch have also announced layoffs.