The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced their inventories.
Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of economic output — weakened after growing 3.2% from July through September and 2.6% from October through December.
But consumer spending, which accounts for about 70% of U.S. economic activity, remained resilient, growing at a 3.7% annual pace, the fastest such rate in nearly two years. Spending on goods, in particular, was solid: It rose at its fastest pace since the second quarter of 2021.
Gap slashing 1,800 jobs
The Gap is laying off 1,800 corporate workers, roughly three time the number of headquarters jobs it cut last fall, as the struggling chain cuts costs in a bid to become more nimble.
More layoffs at the struggling chain follow similar cuts at large U.S. corporations this year, such as Amazon and McDonald’s, with white collar workers taking the brunt of the head count reductions as the economy slows.
In a regulatory filing Thursday, the San Francisco-based chain, which also owns Banana Republic, Old Navy and Athleta, said employees in its San Francisco and New York offices, as well as upper field positions such as regional store managers, will be impacted. Last September, Gap slashed 500 corporate jobs.
Executive chairman Bob Martin, who is also interim CEO, said the layoffs will lead to $300 million in annualized savings. The layoffs should be completed by the end of July, according to the regulatory filing.
