Gap is closing a bunch of stores and says layoffs might be coming

Gap is closing a bunch of stores and could layoff workers soon.

In its earnings results Thursday, the clothing retailer said it is closing 53 Old Navy stores in Japan, as part of a shift to markets, mostly in North America, where the brand is most popular.

It also expects to close 75 Banana Republic stores.

Gap expects to achieve $275 million in annual pre-tax savings through these closures.

Bloomberg reported that Gap could layoff staff, mostly at its headquarters, as part of a restructuring process.

The retailer reported adjusted earnings per share of $0.32, and revenues of $3.44 billion, in line with forecasts.

Same-store sales - at locations open for at least one year - fell 5%; they were forecast at -7%.

Like other department stores, Gap's sales have been getting slammed by declining foot traffic to stores. The company reported weaker-than-expected monthly sales again in April, signaling that the company's turnaround strategy is still not gaining the expected traction.

Last June, CEO Art Peck said the catalyst for sales growth was putting better clothes in its stores.