Gap Inc. furloughing 80,000 store workers because of coronavirus hit to sales
Gap Inc. became the latest retailer to furlough employees en masse while stores remain closed because of the coronavirus spreading through North America and Europe.
On Monday, the owner of Old Navy, Banana Republic, and Gap said that stores in those markets would stay closed past the initial April 1 date on which the company had hoped to reopen stores. Earlier on Monday, Macy’s announced it was furloughing the majority of its 130,000 workers.
Gap Inc. had taken steps in recent weeks to stanch the outflow of cash while much of its business ground to a halt, such as drawing down its $500 million credit line, suspending its dividend, and cutting capital expenditures. But the threat to Gap Inc. has only worsened since stores closed on March 18.
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