Gap to cut 500 corporate jobs amid weak sales

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Gap to cut 500 corporate jobs amid weak sales

SAN FRANCISCO, California - Amidst declining margins and weak sales of old Navy and Banana Republic, the Gap said it will cut 500 corporate jobs.

The company's shares fell by some 3 percent in afternoon trade Friday, adding to a year-to-date decline of 48 percent.

Due to an inventory glut and weak sales, the Gap withdrew its annual forecasts in August.

After former CEO Sonia Syngal stepped down earlier this year, the company is in the middle of a transition, with Executive Chairman Bob Martin currently leading the company on an interim basis.

The company had a workforce of 97,000 employees as of January 29th, with some 9 percent working at its various headquarters, according to a regulatory filing.