Gap Closing 175 Stores

Gap (San Francisco) announced that it plans to close 175 of its 675 brick-and-mortar stores throughout North America over the next few years, with 140 of them planned to close within the year. In total, the company will be closing one-quarter of the brand’s stores.

The company will also be reducing its workforce. Along with the store workers who will be losing jobs, the company plans to cut 250 corporate jobs. The company has not yet announced, however, how many workers' jobs will be cut in total.

The moves are an attempt to revitalize the brand, which has been struggling financially, reports The New York Times. Starting in 2016, the cuts are estimated to generate an annual savings of about $25 million.