Nike will lay off more than 1,600 employees

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San Francisco. Sportswear maker Nike has said it will lay off about two percent of its workforce, or more than 1,600 employees, to cut costs.

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

“This is a sad reality and one I do not take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” Donahoe said in the memo.

According to the report, the layoffs are not expected to impact employees at stores and distribution facilities, nor employees on the company’s innovation team.

The company had approximately 83,700 employees globally as of May 31, 2023.

Furthermore, the report said that the layoffs will begin from Friday, with the second phase being 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 organization to achieve savings.

According to the company, sales increased only one percent through November 30 compared to last year, with shoe sales falling five percent in North America, Nike’s largest market.

–IANS

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