Gap to cut staff, cutback expansion

San Francisco – Locally based Gap Inc. recently announced it will shrink its workforce by as much as 700 jobs from its headquarters staff of 10,000. The U.S. No. 1 retail chain said it also will hold back on its aggressive plans to open new stores. Gap now plans to expand its square footage by 10% rather than 15% as it tries to revive lagging profits and sales. The retailer also warned it would take a second-quarter, pre-tax charge of $10- to $20 million for the effort.