RNS: Sportswear giant Nike is reportedly preparing to reduce its workforce by 1,600 employees, amounting to approximately 2% of its total workforce. The move is part of a cost-cutting strategy, according to media reports.
Founded in 1964 and headquartered in Beaverton, Oregon, Nike is a global leader in sportswear, footwear, and accessories. Nike’s Chief Executive, John Donahoe, indicated in an employee memo reviewed by The Wall Street Journal that the company aims to reallocate resources to prioritize investments in categories such as running, women’s apparel, and the Jordan brand.
The planned layoffs are not expected to impact employees in Nike’s stores, distribution centers, or its innovation team. As of May 31, the company reported having 83,700 employees worldwide.
In his memo, Donahoe acknowledged the challenges ahead, stating, “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.”
