“GAP to Layoff 1,800 Employees in Jakarta and Save $300 Million Annually”

Jakarta –

Fashion retail company GAP will lay off (PHK) its 1,800 employees. This is done by the company as an effort to cut operating costs.

According to CNBCFriday (28/4/2023), interim CEO of Gap Bob Martin said that with this mass layoff, companies can save annual expenses of up to US$ 300 million or the equivalent of Rp. 4.41 trillion (exchange rate of Rp. 14,700/US dollar).

Furthermore, in a memo sent to employees, Bob stated that the mass layoffs would be carried out in three waves. The company plans to complete the layoffs by the end of July at the latest.

“We are taking the necessary actions to reshape Gap Inc for the future, simplifying and optimizing our operating model, enhancing creativity, and driving better delivery across every dimension of the customer experience,” Martin said in a statement.

For information, it was previously reported that this fashion retail giant from the US would carry out mass layoffs. However, previously the company was predicted to only lay off 500 of its employees.

In fact, the number of employees that had to be cut was much larger than expected, namely 1,800 people. This number is also 3 times greater than the mass layoffs that the company carried out in September 2022.

Beyond that, according to the company’s securities filings, the mass layoffs will cost Gap an estimated $100 million to $120 million in pre-tax aggregate costs.

In addition, the company is also expected to spend US$ 75 million to US$ 85 million for employee-related costs and US$ 25 million to US$ 35 million for consulting and other related costs.

(fdl/fdl)