Gap officials announced on Monday that it will be closing 175 stores around the world to focus on its high-performing locations.
The locations slated for closure do not include factory and outlet venues. The company also announced that it will slash 250 headquarter jobs.
"We're focused on offering consistent, on-brand product collections and enhancing the customer experience across all of our channels, including a smaller, more vibrant fleet of stores," Gap Global President Jeff Kirwan said in a statement, according to USA Today.
The announcement was made following months of unfavorable economic results: the company's same-store sales dropped 10 percent in the first quarter of fiscal year 2015. Gap is also under pressure from competitor retailers that have increasingly redirected their sales efforts online.
Although company officials have not announced which stores are set for closure, they have confirmed that they will continue to operate approximately 500 store locations and 300 outlet venues.
"This came out of an evaluation of the business," Gap spokesman Sean Piazza also told USA Today.
"It allows the brand to focus on key store locations, drive productivity and also speed within our headquarters locations."
Gap was founded in 1969 and is headquartered in San Francisco.
