Nike to slash over 1,600 jobs to cut costs

Sportswear giant Nike has said that it will lay off about two per cent of its workforce or more than 1,600 employees in order to cut costs.

In an internal memo to employees seen by The Wall Street Journal, Nike Chief Executive John Donahoe said that the company is using its resources to boost investment in categories like running, women's apparel and the Jordan brand.

"This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable," Donahoe added in the memo.

According to the report, layoffs are not expected to affect workers in stores and distribution facilities, nor those on the company's innovation team. The company had about 83,700 workers globally as of May 31, 2023.

In addition, the report noted that the cuts would begin on Friday, with a second phase completed by the end of the current quarter.

The announcement of job cuts comes after Nike announced in December last year that it would save up to $2 billion in costs over the next three years. 

The company mentioned that it would streamline its organisation to achieve savings.According to the company, sales grew just one per cent through November 30 compared to the previous year, with footwear sales falling five per cent in North America, Nike's biggest market.