Gap's (GPS) August revenue was down 5% to $1.24 billion. Comparable store sales were off 8%. As the recession deepens, those numbers are not going to get better. Gap's flagship stores in the US and overseas are doing relatively well. Its Old Navy division is a mess and Banana Republic comparable store sales dropped 14% last month. Gap operates a total of 3,100 stores across its three brands and has 150,000 employees. Cost cutting helped improve Gap's EPS in the last quarter from $.19 last year to $.32 in the most recent quarter. That says a great deal about how the company can improve shareholder value. Gap has already announced a strategic review to consolidate some of its Gap brand locations, which may spells more layoffs. Supporting over 3,000 stores through a severe retail downturn won't cut it.