“Painful Reality”
Nike is cutting 1,600 jobs
February 16, 2024, 8:30 a.m
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The US company Nike would like to shed 1,600 employees – the job cuts should be completed by the middle of the year. However, not all areas of the sportswear giant are affected.
The sportswear giant Nike apparently wants to reduce its workforce by around two percent as part of cost-cutting measures. As the Wall Street Journal reported, this would affect the jobs of 1,600 employees. The job cuts are expected to begin on Friday and be completed in a second phase by the end of the quarter, the report said, citing a memo to employees.
“It’s the painful reality and I don’t take it lightly,” wrote Nike CEO John Donahoe in the statement. “We are not performing at our best at the moment and my management team and I are responsible for that.” The company is increasing its investments in categories such as running, women’s clothing and the Jordan brand, Donahoe wrote. The job cuts would not affect employees in the stores, distribution centers and innovation teams.
The company cut its annual sales forecast in December and presented a $2 billion cost-savings plan. The reason given for the austerity measures was the restrained consumer spending. Nike had announced that it planned to spend around $400 to $450 million on employee severance costs in the current quarter. The company did not immediately respond to a request for comment regarding the job cuts.