This article is relatively short, and the title pretty much tells it all. Gap plans to lay off 1,800 employees in the coming weeks, after just cutting 500 other jobs in September.
The company has been struggling with bad partnerships, loss of their CEO, and a drop in stock of 23%
GAP, and other recent company's who have been making job cuts, hoping that they will be able to invest their salaries to increase investment. However, if all company's are doing this at once, investment aside, consumers who have lost their jobs, and there are many, - 168,243 people so far in the tech sector alone- will experience a decrease in their discretionary income and this will decrease their spending on said companies.
https://www.cnn.com/2023/04/27/business/gap-layoffs-corporate/index.html
I can understand why Gap is seeing these drops in sales over the past few years. Although it's good for the company to have job cuts it's very unfortunate for the workers who will get laid off. I wonder if these job cuts will have a negative impact on Gaps reputation and potentially hurt sales even more.
ReplyDeleteIt is always sad to see people lose jobs. However, it might be interesting to see if they hire some workers on part time as summer comes and customers increase in stores.
ReplyDeleteIt seems like GAP has been hit particularly hard recently, I wonder how they will be able to recover when if/ when the predicted recession finally does hit. It is possible that as more job cuts occur their business tanks even further.
ReplyDeleteUnfortunately this is a common thing in our economy today. The Fed is trying to increase the unemployment rate and it seems like it is working. Hopefully the economy will be able to bounce back and some of these people can get their jobs back.
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