More Than 1,600 Jobs to Be Eliminated at Nike
In an effort to decrease expenses, Nike said on Thursday that it will be laying off around 1,600 employees, or approximately 2% of its workforce.
According to an internal memo, Nike CEO John Donahoe stated that the firm is allocating more money to expand its investments in running, women’s fashion, and the Jordan brand. Store and distribution center workers, as well as members of its innovation team, are not anticipated to be impacted by the layoffs.
As of May 31, the shoe manufacturer headquartered in Beaverton, Oregon, had approximately 83,700 employees.
I do not accept this harsh fact lightly; it hurts. The current performance level is unacceptable, and I, along with my leadership team, is ultimately responsible for this, Donahoe stated in the memo.
According to the memo, layoffs will begin this coming Friday and be finished by the end of the quarter.
Concerned that customers are growing more frugal with their spending, Nike reduced its revenue forecast for the year in December. It had previously stated its intention to reduce expenses by as much as $2 billion over the following three years by means such as layoffs and reorganization.
According to Donahoe, in order to be competitive, the company needs to “edit, shift, and divest less critical work to create greater focus and capacity for what matters most” (1984).
The news broke as retail sales in the United States fell in January compared to December, a month that had shown strong spending by consumers over the holidays.
Customers have been worried about the company’s capacity to provide creative items, and the degree of competition from other brands has been rising. Also, it has been dealing with inflated stocks recently, which has led to steep discounts on things like shoes and clothing, cutting into revenues.
Changes in innovation, design, marketing, and technology have been announced by Nike in recent months.
