Gap, the parent company of Old Navy, Banana Republic, and Athleta, announced on Thursday its decision to lay off 1,800 employees in a bid to reduce expenses. The move primarily targets the corporate workforce, which makes up 9% of Gap's global staff of 95,000 as of January.

The company aims to save approximately $300 million annually through these cuts. This announcement marks the second wave of job reductions in recent months, following the dismissal of around 500 corporate positions in September.

Gap has encountered numerous obstacles, such as intensifying competition and the termination of a clothing collaboration with the artist formerly known as Kanye West, Ye. The collaboration ended just before West made a series of anti-Semitic remarks last year.

The retail giant has been operating without a permanent CEO since July, after its previous chief executive stepped down. In the past year, Gap's stock has experienced a 23% decline.

Gap is not alone in its workforce reduction efforts, as other major companies like Tyson Foods, 3M, and Lyft also announced layoffs in April. These high-profile job cuts emerge as the job market begins to decelerate after months of impressive post-pandemic growth. In March, US employers added 236,000 jobs, falling short of expectations, indicating that the Federal Reserve's yearlong rate-hiking strategy to curb inflation is now impacting the labor market as well.

Q&A Section:

Q: How many employees will Gap lay off?

A: Gap plans to lay off 1,800 employees, primarily targeting its corporate workforce.

Q: What is the expected annual savings for Gap due to these layoffs?

A: The layoffs are expected to result in approximately $300 million in annual savings for Gap.

Q: When did Gap's previous CEO step down?

A: Gap's previous CEO stepped down in July.

Q: Which other major companies announced layoffs recently?

A: Tyson Foods, 3M, and Lyft also announced job cuts in April.