Business
Nike cuts 2% of global workforce, around 1,600 jobs
By Jake Beardslee · February 16, 2024
In brief…
- Nike cutting 2% of global workforce, over 1,600 jobs
- Aims to cut costs and redirect savings to focus areas like sports and wellness
- Layoffs follow December announcement to cut $2 billion in costs over 3 years
- Part of strategy to accelerate innovation and growth opportunities
Athletic apparel giant Nike announced Friday that it is cutting 2% of its global workforce, amounting to over 1,600 jobs, in an effort to reduce costs and reallocate resources to key growth areas like sports, health and wellness.
Based in Beaverton, Oregon, Nike joins other major companies like Estee Lauder and Levi Strauss & Co. that have recently announced layoffs. “Nike’s always at our best when we’re on the offense,” the company said in an emailed statement confirming the job cuts, according to ABC News.
As of May 31, 2023, Nike employed approximately 84,000 people worldwide, according to its annual report. The news of cuts was first reported by The Wall Street Journal.
In December, Nike lowered its annual sales outlook after second quarter results fell short of expectations, citing “more cautious consumer behavior worldwide in an uneven macro environment.” At that time, Nike announced plans to cut up to $2 billion in costs over three years through measures like streamlining products and increasing automation and technology use.
“We see an outstanding opportunity to drive long-term profitable growth,” said Nike President and CEO John Donahoe in December. “Today we are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness.”
The layoffs are part of this cost-cutting strategy, with savings expected to be reinvested into Nike’s key priorities. Nike shares fell over 4% in morning trading Friday following the announcement.