Clothing retailer Gap has announced it will cut 250 headquarter jobs in a major restructure of the company. In addition, it will close 175 speciality stores in North America.
The company announced the restructure after sales fell over the past few months, struggling in a highly competitive market.
"Returning the Gap brand to growth has been the top priority since my appointment four months ago," new CEO Art Peck said. "Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers."
Peck, who was the president of the Gap brand between 2011 and 2012, is known for introducing digital marketing ideas, such as an app that allows customers to view matching clothing items when it scans the barcode of a pair of jeans.
The company said the steps taken are "part of the comprehensive effort to deliver more consistent and compelling product collections and engage customers across all channels".
Annualised savings from these actions are expected to account for about $25m (£16m, €22.2m), Gap announced. The company added that it will focus on its existing 800 Gap stores in North America and increase the attention paid to online channels.