Job Cuts

David Goldsmith

All Powerful Moderator
Staff member

Gap eliminating about 500 corporate jobs as sales fall​

Key Points
  • Gap Inc. is cutting about 500 corporate positions, it confirmed Tuesday.
  • The job cuts come as the apparel retailer cuts back on spending amid declining sales and the ending of its partnership with Kanye West’s Yeezy brand.
Gap Inc. is cutting about 500 corporate jobs as the clothing retailer struggles with declining sales.
The job cuts, which include open positions, will be primarily at Gap’s offices in San Francisco, New York and Asia and hit various departments, a representative for the retailer confirmed Tuesday. The moves were first reported by The Wall Street Journal.

The San Francisco-based company has experienced a slew of setbacks, including issues with the product assortment at its Old Navy brand, which accounted for more than half the company’s sales in its fiscal 2021.
And last week, Kanye West, who goes by Ye, said he was ending his company Yeezy’s partnership with Gap after the rapper accused the retailer of breaching terms of their agreement. Ye said Gap failed to distribute Yeezy products at its stores by the second half of 2021 and did not create dedicated Yeezy Gap stores as promised.
Ye told CNBC he was dissatisfied with progress on launching physical Yeezy stores in partnership with the retailer. Gap later confirmed the break, but said it still plans to work through its Yeezy product pipeline.

As it struggles to get sales back on track, Gap is also still looking for a new leader after CEO Sonia Syngal abruptly stepped down in July after about two years on the job. Last month, the company withdrew its 2022 financial outlook, citing execution challenges and uncertain macroeconomic conditions.
 

David Goldsmith

All Powerful Moderator
Staff member
Compass conducts layoffs
Real estate giant has more than 100 offices in California

Compass has joined the growing list of American employers reducing headcount ahead of an anticipated recession.

The real estate giant is undergoing layoffs Tuesday as part of its plan to “significantly” reduce costs by the end 2022, VICE reported. The company’s technology team will be heavily impacted, according to the report. The firm, which has more than 100 offices in California, didn’t disclose the size of the layoffs.
“These reductions are difficult, but ultimately necessary to ensure we can confidently navigate the current market,” CEO Robert Reffkin wrote in an email to staff. Reffkin added that the layoffs wouldn’t affect regional operations employees.

Compass’ layoffs come on the heels of Lucidworks, a San Francisco-based tech firm, laying off 10% of its staff. Additionally, Lucidworks CEO Will Hayes is stepping down from his role this week with a replacement to be named shortly.
Ahead of an anticipated recession, three out of four (78%) American workers are fearful they will lose their jobs, according to a survey from Insight Global, a national staffing services company. Meanwhile, 56% of American workers say they don't feel financially prepared for a recession or they don't know how they would prepare for a recession. More than half (54%) would be willing to take a pay cut, even with inflation at a 40-year high, to avoid being laid off if there were a recession.
“It's unfortunate we're already seeing some companies turn to mass layoffs because I believe layoffs should be the absolute last resort,” said Bert Bean, CEO of Insight Global. “Instead, I encourage leaders to consider other solutions, such as building a plan that avoids layoffs and helps you grow through a recession. Get your employee base executing on that, because when you bounce back from a recession, you'll need your people more than ever.”
Of course, HR leaders who experienced the global recession of 2008-2009 are better positioned to weather this potential storm. They’ve learned what works and business leaders will be turning to them to take the helm. As for HR professionals who are about to enter uncharted territory, this will be trial by fire.

“You never know how long these scenarios will last,” Jaemi Taylor, managing director in the HR practice of Allegis Partners, told HRD. Before joining the New York City-based executive search firm, Taylor spent nearly 20 years recruiting HR leaders, having worked for Robert Half, Beacon Hill and ChapmanCG.
“I’ve worked with HR leaders during COVID who asked the CEO or the board for more time, whether that’s a quarter or a month, before making drastic cuts,” Taylor says. “You want to review critical hiring, determine critical business initiatives and most importantly, avoid knee-jerk reactions.”
 

David Goldsmith

All Powerful Moderator
Staff member
Goldman Sachs to kick off Wall Street layoff season with hundreds of job cuts this month
  • Goldman Sachs is planning on cutting several hundred jobs this month, making it the first major Wall Street firm to rein in expenses amid a collapse in deals volume.
  • The bank is reinstating a tradition of annual employee culls, which have historically targeted between 1% and 5% of lower performers, in positions across the firm, according to a person with direct knowledge of the situation.
  • At the lower end of that range, which is the size of the expected cull, that means several hundred job cuts at the New York-based investment bank with 47,000 employees at midyear.

Wall Street layoffs will be selective but broad-based, according to sources, says Hugh Son

Goldman Sachs is planning on cutting several hundred jobs this month, making it the first major Wall Street firm to take steps to rein in expenses amid a collapse in deals volume.
The bank is reinstating a tradition of annual employee culls, which have historically targeted between 1% and 5% of lower performers, in positions across the firm, according to a person with direct knowledge of the situation.

At the lower end of that range, which is the size of the expected cull, that means several hundred job cuts at the New York-based firm, which had 47,000 employees at midyear.

People enter the Goldman Sachs headquarters building in New York, U.S., on Monday, June 14, 2021.
Michael Nagle | Bloomberg | Getty Images
Goldman isn’t likely to be the only bank to cut workers. Before the pandemic, Wall Street firms typically laid off their bottom performers in the months after Labor Day and before bonuses are paid out. The practice was put on pause during the last few years amid a hiring boom.
Goldman declined to comment on the record about its plans. The timing of the cuts was reported earlier by the New York Times.
In July, CNBC was first to report that the bank was looking at a return to the annual tradition of year-end job cuts.
Steep declines in investment banking activities, especially IPOs and junk debt issuance, created the conditions for the first significant layoffs on Wall Street since the pandemic began in 2020, CNBC reported in June.

 
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