The Gap job cuts follow recent corporate layoffs at other retailers, including Walmart Inc., Abercrombie & Fitch Co., and Stitch Fix Inc. In addition, Bed Bath & Beyond Inc. has said it plans to shrink its corporate ranks amid a deep sales slump.
Retail sales have slowed from their torrid pace of last year, as consumers spend less on apparel and homegoods and more on traveling and dining out. Inflation is making groceries, gas and other items more expensive, leaving less room in budgets for nonessential goods. That has caused inventories to pile up at many retailers, which is depressing profits as they offer discounts to clear out the goods.
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