Nike plans to lay off 740 employees at its Oregon headquarters before June 28, the company told state officials.
The company notified state and local officials Friday of the workforce reduction at its Beaverton, Ore., headquarters in a notice required by the Employee Adaptation and Retraining Notification Act. workers.
The sportswear giant will “permanently reduce its workforce at its global headquarters” as part of a “second phase of impacts” that would begin by June 28, Nike Vice President Michele wrote Adams, in the opinion, first reported by Reuters and Oregon Public Broadcasting.
Two months ago, Nike CEO John Donahoe told employees in a memo that he planned to cut its workforce by about 2 percent, or more than 1,600 employees, the Wall Street Journal reported at the time. The company had approximately 83,700 employees as of May 31, 2023.
“Nike is always at its best when we are on offense. The actions we are taking position us to right-size our organization to capture our greatest growth opportunities, as interest in sports, health and wellness has never been stronger,” the company said in a statement to USA TODAY “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.
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Layoffs at Nike are due to cost-cutting measures
The cuts are part of a three-year plan to cut $2 billion in costs announced by Nike in December.
Nike is targeting cost cuts as it expects a “single-digit” revenue decline in the first half of its 2025 fiscal year, which begins June 1. “We are taking our product portfolio through a period of transition,” said Nike’s CFO. said Officer Matt Friend during the March 21, 2024 results call.
Nike shares rose nearly 2% last week, but are down more than 11% so far this year and more than 23% year-over-year.
More Nike news: Olympic uniform flap and will Caitlin Clark get her own shoe?
Earlier this week, Nike’s new athletics uniforms for the 2024 Paris Olympics were criticized for being too skimpy.
Meanwhile, Caitlin Clark, who became the No. 1 pick in the WNBA draft on April 15, could be about to land a new eight-figure contract with Nike and get her own signature shoe, The Athletic reported .
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News Source : www.usatoday.com
Gn bussni
