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Gap Is Closing 175 Stores and Cutting 250 Jobs

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Gap will close 175 underperforming stores in North America and eliminate 250 jobs (mostly at Gap Inc.'s North American headquarters), Bloomberg reports. The cuts are part of Gap Inc. CEO Art Peck's attempt to turn things around for Gap and make the brand relevant again.

"Some of the stores that we’re currently in don’t represent the best of our brand," Gap global president Jeff Kirwan said. "We want to make sure we don’t have so much of a disparity."

Of the 175 stores, 140 will close by January and the rest will close after. By the time the cuts are completed in 2016, Gap anticipates saving $25 million a year.

Peck said that he's "comfortable" with the current number of Old Navy and Banana Republic stores, and continues to be driven by the idea of digital and mobile shopping. "Obviously over the last four years the customer has continued to embrace digital and mobile. We’re always looking at our fleet and the right locations," he said.