Yes, Squids have gills. They need them to breathe underwater. There's different kinds of squids and therefore different kinds of gills that they have but generally they have a total of 4 gills, 2 on each side. On a sidenote to the previous answer: Squids are NOT fish.
Squids can come in many different colours; and yes red is one of the colours they can be. Squids can also be red, purple, blue, and a few others. The colour of squids can depend on what they eat or where they live (there are other factors of the colours as well).