Gap cutting hundreds of jobs, second mass layoff in months

Just months after eliminating approximately 500 corporate jobs in September, Gap is reportedly scaling back its staffing levels even more.

According to an internal memo that was reviewed by Bloomberg, the apparel retailer plans to lay off hundreds of employees in three phases. 

The latest reduction is expected to affect members of the company’s international sourcing division, roles across brands in headquarters, and staff in finance.

While Gap didn’t disclose how many workers will be affected, the Wall Street Journal reported on April 25 that the job cuts could be deeper than the September layoff.

At the end of January, the retailer employed a total workforce of approximately 95,000 people, according to a regulatory filing.

Impact on Canadian staff

It remains unclear how many Canadian employees could be affected by the latest round of layoffs at Gap.

The company operates over 70 physical stores across the country, with the majority located in Ontario, Alberta, and B.C.

According to LinkedIn, Gap has more than 900 employees in Canada.

Major layoffs continue

Gap joins the growing list of major North American companies that have announced sweeping layoffs in 2023.

Big names, including Lyft, BuzzFeed, Meta, Amazon, Accenture, Alphabet, Clearco, and Microsoft, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• McDonald’s tells corporate staff to work remotely ahead of layoffs
• Hudson’s Bay laying off 2% of staff, realigning ‘strategic priorities’
• Layoffs in Canada

Termination agreements for Gap employees

In Canada, non-unionized employees and senior executives at Gap are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Rights to severance for provincially regulated employees
• Severance pay in a recession 

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.