Nike plans to slash over 1,600 jobs in cost-cutting drive

Friday, 16 February 2024 09:22

By Reuters

Sportswear giant Nike plans to reduce its workforce by about 2 per cent, or more than 1,600 jobs, in a cost-cutting move, the Wall Street Journal reported on Thursday.

The job cuts are expected to start on Friday, and a second phase will be completed by the end of the quarter, the report said, citing an employee memo.

The layoffs are not expected to impact employees in stores and distribution centers or those in its innovation team, according to the WSJ report.

The Air Jordan 1 shoe maker is using its resources to increase investment in categories like running, women's apparel and the Jordan brand, the report quoted CEO John Donahoe as saying in the memo.

Nike did not immediately respond to a Reuters request for comment.

The report comes after the company in December cut its annual revenue forecast and laid out a $2 billion cost-saving plan, blaming cautious consumer spending.

Nike had said it would incur about $400 million to $450 million in employee severance costs in the current quarter.

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