Gap Inc. furloughs store employees; exec team takes pay cut
Gap Inc. is extending its store closures past the previously announced April 1 date to help slow the spread of COVID-19.
As part of its decision, the company will furlough the majority of its store teams in the United States and Canada. It also is reducing headcount across its corporate functions around the world. Gap is temporarily halting pay, but will continue to offer applicable benefits until stores are able to reopen.
In addition, the entire Gap leadership team along with the board will take a temporary reduction in pay.
To support its impacted employees, particularly its store teams, Gap has set up an employee resource center, including resources to identify and apply for temporary roles at other retailers that remain open and hiring.
“After taking the extraordinary measures of temporarily closing all of our company-owned stores in North America and Europe two weeks ago, we are now in a position where we must take deeper actions,” said Sonia Syngal, president and CEO, Gap Inc. “We know that tens of thousands of people rely on us to support themselves and their families, and that millions more around the world rely on our business. We are doing everything we can to provide support during this time, and we are intensely focused on welcoming back our store teams and customers as soon as we are able.”