SAN FRANCISCO, California: Amidst declining margins and weak sales of outdated clothes of its brands, including Old Navy and Banana Republic, the Gap said it will cut some 500 corporate jobs.

The news was first reported by the Wall Street Journal.

The company said it is making staff redundant and eliminating positions that are currently open across a range of departments, mainly at its offices in San Francisco and New York, as well as Asia.

The company's shares declined by some 3 percent in afternoon trade Friday, adding to a year-to-date decline of 48 percent.

Due to an inventory glut and weak sales, the Gap withdrew its annual forecasts in August.
After former CEO Sonia Syngal stepped down earlier this year, the company has been in the middle of a transition, with Executive Chairman Bob Martin currently leading the company on an interim basis.

According to a regulatory filing, as of 29th January the company had a workforce of some 97,000 employees, with some 9 percent working at its various headquarters.