Sportswear firm, Nike is all set to reduce staff strength at its Oregon headquarters by 740. This is part of a cost-cutting exercise because the company expects to see its revenue dip in the first half of financial year 2024-25. With people cutting down on spending, the company expects sales to be weak this year.
In December 2023, the sports brand had revealed its intention to launch a cost-saving initiative that will bring down expenditure by $2 billion in three years’ time. At the time, the company had also revealed that it would be spending about $400 million in severance pay to the impacted employees. Two months later, in February 2024, Nike had revealed its plans to do away with two per cent of its global workforce. That is, it was gearing to axe at least 1,600 jobs. It was also revealed that those working at the Nike stores and distribution centres, as well as the members of the innovation team were expected to be spared.
The next phase of trimming will take place in June end.
The workforce strength of Nike as of 31 May, 2023, was about 83,700.
This isn’t the first time Nike is trying to axe jobs. In 2020, it had let go 700 amidst the pandemic.
Meanwhile, Nike has found itself amidst a controversy due to an Olympic 2024 uniform meant for the US track and field members. The uniform was criticised for being too skimpy.
