Gap Inc. seen eyeing job cuts

NEW YORK (CNNMoney.com) -- Struggling clothing chain Gap Inc. could soon announce job cuts as part of its ongoing efforts to reduce business costs in light of weak sales and traffic trends at its stores, according to a published report Wednesday.

The New York Post, citing unnamed sources, said the layoffs, expected in coming weeks, are likely to run from the corporate office down to the company's divisional levels.

Gap Inc., (Charts, Fortune 500) the No. 1 clothing seller, employs about 150,000 people worldwide, the paper said.

It's no secret that the San Francisco-based retailer has been plagued with a protracted string of sales declines at its namesake stores .The company operates more than 3,000 stores in the United States, including its Gap, Banana Republic and Old Navy divisions.

And the hits keep coming. In January, Gap ousted former chief executive officer Paul Pressler for failing to correct its sales slump. A month later, the retailer announced it would shutter its fourth concept - Forth & Towne - which targeted a more mature clientele.

The company is also rumored to have hired Goldman Sachs to help it explore strategic alternatives, including sale of the company.

The retailer did get some respite from its woes when it reported a stronger-than-expected 6 percent sales increase in March at its stores open at least a year, which is a key measure of retail performance known as same-store sales.

Gap spokesman Greg Rossiter told the paper that layoffs were part of the company's cost control plan but added that they would be a relatively small percentage of the total workforce.

Gap's news comes a day after apparel maker Liz Claiborne (Charts, Fortune 500) announced results that fell well short of analyst estimates, sending shares tumbling more than 17 percent. Even as the market has surged to record highs in recent weeks, shares have struggled at retailers like Abercrombie & Fitch (Charts), American Eagle Outfitters (Charts) and J. Crew Group (Charts).