Nike to axe over 1,600 jobs as it trims its expenses

16th Feb 2024 08:30

(Sharecast News) - Sportswear giant Nike announced plans to reduce its workforce by about 2% overnight, equating to more than 1,600 jobs, as part of a cost-cutting initiative following a year of weaker profits.

According to Reuters, the moves came after Nike unveiled a $2bn cost-saving strategy spanning three years in December, which included measures such as streamlining product supply, enhancing the efficiency of its supply chain, restructuring management hierarchies, and augmenting automation processes.

It also disclosed its expectation of incurring between $400m and $450m in employee severance expenses during the third quarter.

According to a company filing, Nike boasted a workforce of around 83,700 employees as of 31 May 2023.

The Wall Street Journal reported that the impending job cuts were set to commence imminently, with an initial phase expected to begin on Friday and a subsequent phase set for completion by the conclusion of the current quarter.

Reuters said the announced layoffs were not anticipated to affect personnel working in retail stores, distribution centres, or the company's innovation team.

Reporting by Josh White for Sharecast.com.