Nike to cut 740 jobs
Nike Announces Layoffs: 740 Employees to Be Let Go
Sports giant Nike is set to lay off approximately 740 employees at its global headquarters in Oregon, as revealed in a letter disclosed on Friday and reported by Reuters.
This move by the leading sportswear manufacturer is aimed at controlling expenses following its anticipation of a revenue decline in the first half of fiscal year 2024-25.
Michele Adams, Vice President for People Solutions at Nike, specified in a notification to state authorities that the “second phase of impacts” is expected to begin by June 28 at the company’s headquarters, according to the report. Although the company’s shares saw a slight increase after hours, it’s notable that they have decreased by around 13 percent over the course of this year.
In December, Nike unveiled a cost-saving initiative aiming to achieve $2 billion in savings over the subsequent three years. In February, the company disclosed its intention to reduce approximately 2 percent of its overall workforce, equating to more than 1,600 positions.
“This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” said Nike’s Chief Executive, John Donahoe, in a memo at the time.
As of May 31, 2023, the sports giant employed approximately 83,700 people.
Numerous firms in both the United States and Canada have recently announced fresh rounds of layoffs, in response to reductions witnessed in 2023, all aimed at trimming expenses amidst an unpredictable demand landscape.
In March of this year, Nike indicated that its revenues for the first half of fiscal 2025 are expected to decline by a low-single-digit percentage as the company aims to reduce investment in specific product lines. Similarly, Nike’s global peers, such as Adidas, Puma, and JD Sports, have reportedly issued warnings regarding diminished earnings for the present year, attributing this to a decline in consumer expenditures on non-essential goods.
