Several major retailers are downsizing their workforces as they struggle to adapt to changing consumer behavior and increased competition from e-commerce companies. The pandemic has had a profound impact on the retail industry, with many companies struggling to adapt to the shift towards online shopping and changes in consumer behavior. Data from the US Department of Labor reveals that the retail sector has lost over 500,000 jobs since the start of the pandemic in early 2020.

Apparel retailer Gap Inc is the latest to announce a substantial number of job cuts, following in the footsteps of Meta Platforms, Clorox, and Wayfair. The move is reportedly a response to concerns of an impending recession in the US, with many companies seeking to reduce costs and streamline operations.

According to sources familiar with the matter, Gap's current round of job cuts will focus on its international sourcing division, and is expected to exceed the roughly 500 corporate roles eliminated. The company had a workforce of approximately 95,000 employees, and has been notifying affected employees since April 18.

Gap, which operates over 3,800 stores worldwide, has been hit particularly hard by the pandemic, reporting a net loss of $665 million in 2020. In response, the company has been focusing on e-commerce and digital sales, which have seen rapid growth in recent years. Despite this, brick-and-mortar stores remain a significant part of Gap's business, with over 1,000 stores across the US, Europe, and Asia.

The job cuts at Gap come amidst concerns of a potential recession in the US, driven by inflation, supply chain disruptions, and other economic factors. As companies seek to prepare for a possible downturn, more downsizing efforts and operational restructuring are likely in the coming months. The impact of Gap's job cuts on the company's performance and future growth prospects remains to be seen.