Nike to Lay Off 740 Employees Amid Revenue Concerns

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Nike has announced layoffs for around 740 employees at their world headquarters in Oregon.
Nike has announced layoffs for around 740 employees at their world headquarters in Oregon.

Nike, the leading sportswear maker, announces layoffs affecting approximately 740 employees at its world headquarters in Oregon. The move comes as part of cost-saving efforts following the company’s warning of a revenue decline in the first half of fiscal 2025.

Details of Layoffs:

The layoffs, described as the “second phase of impacts,” are scheduled to commence by June 28 at Nike’s headquarters.

Michele Adams, Nike’s vice president for people solutions, issues a legally mandated notice to state authorities regarding the impending job cuts.

Context and Financial Outlook:

Nike had previously outlined a cost savings plan targeting $2 billion over the next three years, with a workforce reduction of about 2% announced in February, equating to over 1,600 roles.

The company’s shares experience a marginal increase in after-hours trading despite declining nearly 13% over the course of the year.

In March, Nike revealed concerns about revenue contraction in the first half of fiscal 2025, citing a low-single-digit percentage decline. This decision comes as the company aims to streamline operations by scaling back on certain franchises.

Broader Economic Landscape:

The announcement from Nike adds to a series of layoffs witnessed across various industries in the U.S. and Canada, reflecting efforts to manage costs amidst uncertain demand conditions.

These cost-cutting measures underscore the challenges faced by companies navigating economic uncertainties and evolving market dynamics.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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