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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.
