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NIKE PLANS TO CUT ABOUT 2% JOBS




Nike announced on Thursday its plan to reduce its workforce by approximately 2%, equivalent to more than 1,600 jobs, as part of its efforts to streamline operations and reduce costs following a year of weaker profits. This decision aligns with similar moves by its industry peers, including Adidas, Puma, and JD Sports, who have all warned of diminished earnings amid reduced consumer spending on non-essential items.

In December, Nike unveiled a $2 billion cost-saving initiative spanning three years. This plan involves various measures such as optimizing product supply, enhancing the efficiency of its supply chain, streamlining management structures, and increasing automation. As part of this restructuring effort, the company anticipated incurring employee severance costs totaling approximately $400 million to $450 million in the third quarter. The decision to trim its workforce comes amidst ongoing challenges in the retail landscape, including shifting consumer preferences and market dynamics exacerbated by the COVID-19 pandemic. Nike's move reflects its commitment to adapt to these changes and position itself for sustained growth and profitability in the future.

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