Gap cuts 1,800 corporate jobs amid sales slump

FILE PHOTO: People pass by the GAP clothing retail store in Manhattan, New York, U.S., August 15, 2016. REUTERS/Eduardo Munoz

Gap is laying off 1,800 corporate workers as the struggling chain cuts costs in a bid to become more nimble.

There have been numerous job cuts at U.S. corporations this year like Amazon and McDonald's that have hit particularly hard for white collar workers as the economy slows.

In a regulatory filing Thursday, the San Francisco-based chain, which also owns Banana Republic, Old Navy and Athleta, said employees in its headquarters as well as upper field positions such as regional store managers, will be impacted.

Interim CEO Bob Martin said the layoffs will lead to $300 million in annualized savings. The layoffs should be completed by the end of July, according to the regulatory filing.

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

As of January 28, The Gap Inc. employed roughly 95,000 employees, about 9% worked in headquarters locations, according to its annual report.

Gap's shares rose nearly 1% or 8 cents, to $9.42 Thursday.