As part of cost-cutting measures, Nike, the global sportswear brand, is gearing to do away with two per cent of its global workforce. That means at least 1,600 jobs will be axed. However, those working at the Nike stores and distribution centres, as well as the members of the innovation team are expected to be spared
With people cutting down on spending, the company expects sales to be weak this year.
In December 2023, the brand had revealed that it would lay off hundreds from its workforce to cut costs of up to $2 billion. It had also revealed that it would be spending about $400 million in severance pay to the impacted employees. At the time it was known as to how many employees would be impacted.
The last time the company had decided to trim its workforce, about 700 employees had been rendered jobless amidst the pandemic, in 2020.
As per media reports, this second major layoff round has been resorted to because the company has been forced to take measures to cut costs across various divisions due to dwindling sales. Sales over the last past quarter or so have gone up merely by about one per cent. In 2017, Nike had trimmed its workforce by about 745 in Oregon, where it happens to be the largest company. Globally, Nike has a workforce of well over 83,000 as of 31 May 2023.
The job cuts will begin to be implemented today, while the second phase will be completed by the end of this quarter.
