As part of a comprehensive restructuring effort aimed at increasing agility and reducing bureaucracy, Gap Inc. is reportedly eliminating numerous corporate positions from its global workforce. 

As reported by Fox News, the current wave of layoffs at Gap is expected to be more substantial compared to the previous round in September, during which around 500 corporate jobs were eliminated. 

The previous cuts were primarily concentrated at the company's main offices in San Francisco and New York, and were part of cost-saving measures aimed at achieving an annual savings target of approximately $250 million.

The leaders of Gap’s various brands, including Gap, Old Navy, Banana Republic, and Athleta, have been engaged in a comprehensive review with the objective of streamlining the management structure to accelerate decision-making processes.

"Our goal is to flatten the organisation, increase spans of control to create more robust roles and individual empowerment, and decrease layers to remove bottlenecks and make better, faster decisions," according to a memo from Gap Chairman and interim Chief Executive Bob Martin to employees last week.

In March, the company announced its identification of $300 million in additional cost-cutting measures, which included the removal of management layers. While the company did not disclose the exact number of job losses at that time, it did announce the elimination of the chief growth officer position. 

Starting on April 18, Gap initiated the process of notifying employees who would be affected by layoffs in its international sourcing division. This week, the company is expected to inform staff at its San Francisco headquarters about potential layoffs. The finance team is scheduled to be notified in late May, as stated in the internal memo.

The fashion giant is undergoing these changes as it still operates without a permanent CEO following the resignation of its previous CEO in July. In March, interim CEO Mr Martin mentioned that the board was nearing the selection of a new CEO, who would be an external hire.

Several companies, including the parent companies of Facebook and Google, as well as Dow and 3M Co, have recently announced layoffs. These moves are often attributed to concerns over a weakening economy or efforts to achieve operational efficiencies.

According to insiders, Gap's restructuring efforts are primarily aimed at addressing the issue of growing bureaucracy that has made the company inefficient. Over the years, Gap had become overly siloed, with executives more focused on protecting their own territories rather than creating products that would resonate with shoppers. Style decisions were reportedly hindered by excessive meetings, resulting in delays and inefficiencies within the company.

In the past year, Gap has faced challenges such as a misfire at its Old Navy chain, where a plan to create clothing sizes for all backfired, resulting in excess inventory. Additionally, the company went through a messy breakup with musician and designer Kanye West. 

As a result, for the fiscal year ending on January 28, net sales declined by 6% to $15.62 billion, and the company incurred a loss of $202 million compared to a profit of $256 million in the previous fiscal year, reported Fox News. 

As of late January, Gap had a global workforce of approximately 95,000 employees, with the majority working in retail locations. About 9% of the company's workforce is based in headquarters locations, according to Gap. Over the past 12 months, the company's shares have declined by 14%, in contrast to a less than 3% decline in the S&P 500 index.