Breaking News: Gap Announces Layoffs and Corporate Job Cuts

    Gap, one of the nation's struggling retail chains, announced on Tuesday it is cutting 1,800 employees; three times more than what was initially announced back in September. As economic conditions worsen, large corporations like Gap have been cutting jobs. These cuts will have an impact on workers at both headquarters locations as well as upper field positions such as regional store managers. Employees will be informed in three waves. Employees will be notified in three waves. Breaking News: Gap Announces Layoffs and Corporate Job Cuts Apparel retailer Gap announced yesterday it plans to cut more than 500 corporate workers as it seeks to save money through restructuring. Sources told The Wall Street Journal earlier this week that Gap is expected to cut twice the number of jobs it cut in September as part of an overhaul intended to increase productivity while simultaneously making their company more nimble, according to reports published earlier in the week. Following losses and inventory issues that have made profitability difficult for the struggling company, these moves will reportedly cost between $100 million to $120 million in pretax costs according to a securities filing. Asheesh Saksena will leave as Chief Growth Officer; Mary Beth Laughton will serve as CEO for Athleta; Sheila Peters will remain as the Chief People Officer. Gap has initiated its second round of layoffs within months, in a wave that has already affected numerous large companies across America such as Dropbox, Clorox and 3M - among others. These cuts are part of an unprecedented wave of mass layoffs across Corporate America due to inflation's impact on consumer wallets. While it's an indicator of an economy suffering, it also signals the need for firms to reduce expenses and become more cost-efficient. Gap employees in its international sourcing division were informed about these cuts on April 18 and San Francisco headquarters staff will receive notification this week, according to sources. They'll be informed in late May - one source noted. Gap announced in a statement that its layoffs are scheduled to conclude by the end of 2023, according to Old Navy, Banana Republic and Athleta brands under their control. Gap has been struggling to generate sales without an established CEO at its helm. The recent layoffs are part of an expansive restructuring program intended to make the company more agile and less bureaucratic, which was announced back in March and is projected to result in savings totalling $300 million each year, according to company statements released Thursday. Employees will be offered severance pay. Breaking News: Gap Announces Layoffs and Corporate Job Cuts Only months after eliminating about 500 corporate jobs in September, Gap has now revealed plans to further reduce staff levels by cutting hundreds of employees reportedly over three stages, according to an internal memo reviewed by Bloomberg. Employees impacted by cutbacks will receive a severance package which may include salary continuation, paid time off benefits and redundancy pay as well as outplacement services. Each package can be tailored specifically to the employee and the amount received depends upon how long they've been with the company. Severance packages typically cover an employee's final salary and benefits for a specified number of weeks either all at once or over time, including contributions into his/her retirement or pension account and outplacement assistance such as professional agencies providing job search support services. Severance packages tend to vary in amount according to both an employee's length of service and budgetary constraints, and often aim to encourage employees back into employment by offering incentives. Unemployed workers can find it hard to secure employment quickly so employers often offer severance in an attempt to entice workers back. Employers often see retention of high-value employees with specialized skills or scientific knowledge as an incentive, by paying severance. Furthermore, employers may wish to maintain highly qualified and experienced workers on hand in case future job openings arise. However, employers must remember that they don't need to offer severance; in fact, the Fair Labor Standards Act doesn't mandate them. Some states do have laws on severance pay, but these are typically overridden by federal legislation. Furthermore, employees may legally receive such payments under their collective bargaining agreements. An employee receiving severance pay can have an effect on how they withhold taxes from their income, depending on its calculation method. This means they should make themselves aware of this beforehand to understand its effect financially. Employees will be offered a relocation package. Relocating packages are a fantastic way for companies to ensure employees feel welcome in their new roles and can help the new employee adjust as smoothly as possible when starting work for the organization. Relocation packages should help the new employee to ease into life at their new place of employment before joining so everyone involved experiences as little disruption during this transitional phase as possible. Relocation packages vary, but all share one thing in common: they aim to ease the financial strain associated with moving. There are various ways companies may cover moving expenses, but one option might be offering reimbursement after employees submit expense reports. Employers frequently offer additional benefits when relocating employees, such as hotel and meal costs, truck or car rental services and amenities. Typically, benefits offered depend on both job position and employee level of experience; less seasoned or younger employees typically receive a more basic relocation package than established and more senior ones. Employers should take into consideration when creating their relocation package the amount of time they believe is required by employees for relocation. Packing, selling a home, finding schools for their children and finding movers all take time - not to mention saying goodbye to family and friends who will no doubt remain behind. Companies often offer housing vouchers to assist employees relocating for work find housing in their new city, alleviating much of the stress involved with relocating. This can be an invaluable way to assist relocating employees find suitable accommodations more quickly. Employers also often offer relocation workers additional perks, including trips to their new area so they can familiarize themselves with it before moving. Companies generally also permit these employees to market their current home and purchase one if desired. Relocating for a new job can be both exciting and stressful, which makes companies offering relocation packages an effective recruiting tool that attracts qualified applicants from wider geographical regions than otherwise available. Employees will be offered a job at another company. At the top of your email, express your excitement for their joining your company and welcome them with open arms. Keep the rest brief and succinct; highlight any specific benefits associated with their new position or any services provided to them by the company. If you are providing a 401K match, ensure it is clearly listed and transparently to ensure both hiring manager and new employee can easily understand how much money will be offered, thus expediting their onboarding process. Your hiring manager and potential employee deserve to see that your organization takes its employment opportunities seriously, which means going the extra mile for its staff while taking risks on future talent. Take this chance and show your hiring manager and employee why your organization deserves their business! Final tip: Be sure to include your contact info in the body of the email so they can reach you directly, speeding up their hiring process while maintaining professional communications and keeping on brand. At the core of it all is gratitude for those joining your team, this will not only increase productivity and morale among employees but will also give you an opportunity to assess your current staffing plan and see where improvements can be made.