Nike announced plans to cut 2% of its workforce, or more than 1,600 jobs. Thus, the company seeks to reduce costs after declining profits. The Wall Street Journal writes about this.
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Nike CEO John Donahue said that the company is using its resources to increase investment in categories such as running, women's apparel and the Jordan brand, according to a memo to employees seen by the newspaper.
The layoffs are not expected to affect store and distribution center employees, as well as the company's innovation team. p>
As of May 31, 2023, the company had approximately 83,700 employees.
“This is a painful reality, and I do not take it lightly. We are not performing at our best right now, and I ultimately take responsibility for that with myself and my leadership team,” Donagio said in the memo.
In December, Nike lowered its revenue forecast for this year by amid concerns that consumers are becoming more cautious in their spending. At the time, the company said it planned to cut costs by $2 billion over the next three years through job cuts and streamlining.