June 23, 2024

Political Commentary

News Politics Business Sports

Nike to lay off 2% of employees, cutting more than 1,500 jobs

2 min read

A man wearing a protective face mask walks past a Nike brand store in Kyiv, Ukraine, on Dec. 10, 2020.

Valentyn Ogirenko | Reuters

Nike is cutting 2% of its current workforce, or more than 1,500 jobs, as part of a broader restructuring, the company said late Thursday.

The Beaverton, Oregon-based sneaker giant said it wants to better use its capital to invest in its growth areas, such as running, women’s and the Jordan brand.

“This is how we will reignite our growth,” CEO John Donahoe said in a memo obtained by CNBC.

“This is a painful reality and not one that I take lightly,” he added. “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

Nike said the layoffs will take place in two phases. The company will start the first round this week, and finish the second by the end of its fiscal fourth quarter, which typically concludes at the end of May. Cuts in Nike’s EMEA region will be on a different timeline based on local labor laws, the company said.

It’s not clear which departments will experience layoffs, but they will not affect retail employees at Nike’s stores or warehouse workers, the company said.

The cuts come as consumers become more cautious in their spending and the retail industry braces for a demand slowdown for discretionary items such as clothes and shoes, which is Nike’s bread and butter.

In December, Nike unveiled a broad restructuring plan to cut costs by about $2 billion over the next three years. It lowered its sales outlook as it prepared for lower demand and wholesale orders, soft sales online and a marketplace that relies more on promotions.

As part of its plan to cut costs, Nike said it was looking to simplify its product assortment, increase automation and its use of technology, streamline the organization by reducing management layers and leverage its scale “to drive greater efficiency.”

Shortly before the restructuring was announced, The Oregonian reported that Nike had been quietly…

2024-02-16 09:46:03

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator

Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.