Gap announced its decision to lay off 1,800 employees

As of January 28, 2023, Gap had a global workforce of around 95,000 employees. The layoffs will primarily impact the company’s corporate workers, including those in its international sourcing division and San Francisco headquarters.

This downsizing trend has been observed across various American firms, including tech giants like Meta Platforms Inc and Alphabet Inc, as well as consumer companies like Clorox Co and Wayfair Inc.

“To mitigate employee risks, it is crucial for retailers to consider the potential negative effects of layoffs on their remaining workforce. Studies have shown that post-layoff, employees who retain their jobs often experience a decline in performance and engagement.

Layoffs can also lead to increased turnover, as top performers may seek opportunities elsewhere over fears they may be next. To mitigate these risks, retailers should approach workforce reductions with caution and transparency.” says Retail Expert, Jeanel Alvarado…