The Stock Is Rising Despite The Gap To Cut 1,800 Corporate Jobs.

According to the company, Gap plans to lay off roughly 1,800 employees from its corporate offices as part of a restructuring strategy to rationalize its staffing levels and reduce its operating costs.

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During a quarterly earnings report in March, Gap (ticker: GPS) announced a number of cuts that are part of its plans to streamline and simplify the organization for greater efficiency and leanness. 

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Gap said in a filing with the Securities and Exchange Commission that a portion of the layoffs would affect staff working at the company's headquarters in San Francisco and its upper field workforce.

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As part of the restructuring plan, the company currently plans to reduce its workforce by a total of 300 million dollars in annualized savings as part of the current round of cuts. 

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According to Gap, approximately half of the savings from these initiatives will be realized by 2023.

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Up to $85 million in layoffs are expected to be incurred by the company, as well as up to $35 million in consulting fees and other other costs that will be incurred as a result of the layoffs.

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As a result of this round of cuts, the 500 announced in September will now be reduced by another 500.

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In a report that appeared earlier this week in the Trade Algo, it was reported that some jobs had been cut.

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On Thursday, early morning trading in Gap shares rose 1.6% to $9.49, with the stock up by 1.6% in the last week. Since the beginning of the year, the stock price has fallen 16%.