Nike announced a move to restructure its workforce, which will unfortunately result in a 2% reduction, equating to over 1,500 jobs. This decision, while challenging, is aimed at optimizing capital allocation to key growth areas such as running, women’s sports, and the iconic Jordan brand.
Company leadership, including CEO John Donahoe, expressed the difficulty of this decision, emphasizing accountability and a commitment to future performance. The layoffs will occur in two phases, with the first round beginning immediately and the second phase wrapping up by the end of the fiscal fourth quarter in May. The timing of cuts in Nike’s EMEA region will be based on local labor laws.
It’s important to note that these layoffs will not affect retail employees in Nike stores or warehouse staff. The restructuring comes amidst a cautious consumer spending environment, particularly in discretionary categories like apparel and footwear.
In December, Nike outlined a broader restructuring plan to reduce costs by $2 billion over the next three years. This plan includes simplifying product offerings, increasing automation and technology utilization, and streamlining the organization by reducing management layers.
(Source: Oregon Live | Complex)
