Shares of the Banana Republic parent rose about 2% in early trade.
Mass layoffs to rein in costs have swept across Corporate America over the past months - from tech giants such as Facebook-parent Meta Platforms Inc (META.O) and Alphabet Inc (GOOGL.O) to retailers such as Clorox Co (CLX.N).
Gap said it expects to take on about $100 million to $120 million in aggregate pre-tax costs - consisting of about $75 million to $85 million in employee-related expenses - as a result of the workforce reduction, which is expected to be completed by the end of the first half of fiscal 2023.
The Wall Street Journal first reported on the new round of job cuts earlier this week.
Consumers, especially at the lower- to mid-income rung, have curbed spending on non-essential items, impacting sales of apparel with all of Gap's four brands posting a fall in sales in the fourth quarter.
The company is in the middle of a CEO transition after Sonia Syngal stepped down last year, and is currently led on an interim basis by Executive Chairman Bob Martin.
