Gap is gearing up for a significant restructure of its North American division, which the company say is predicted to save it approximately $25 million per year and make the company “faster and more decisive”.
The changes include the closure of 175 underperforming stores in North America and 250 corporate jobs.
The stores closing only affect Gap, not the group’s Old Navy or Banana Republic brands.
Figures show that like-for-like sales for the fashion retailer dropped by 15% in April, compared to a 3% increase for the same period the previous year.
Gap said that employees involved in the store closures and cuts will be offered different locations.
Art Peck, chief executive said: "Returning the Gap brand to growth has been the top priority since my appointment four months ago."
"Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers."
