Business News

Nike to sack over 700 people

Nike Inc. is set to eliminate over 740 jobs at its Oregon headquarters by late June as part of its ongoing cost-cutting efforts. This move marks the “second phase of impacts” as the sportswear giant continues to streamline its workforce, according to a filing with the state of Oregon made by Nike’s vice president of people solutions, Michele Adams.

The decision to reduce staff comes as Nike’s Chief Executive Officer, John Donahoe, announced plans in December to cut the global headcount by 2%, aiming to achieve up to $2 billion in cost savings over the next three years. Initial layoffs commenced in February, with the company aiming to complete the process by the end of its fiscal year, as stated in an internal memo reviewed by Bloomberg News.

Donahoe emphasized the necessity of these measures in a bid to enhance competitiveness, stating,

The sportswear giant’s decision shows broader industry challenges and the imperative for companies to adapt swiftly to changing consumer preferences and market conditions. By streamlining operations and reallocating resources, Nike aims to enhance agility and resilience in a fiercely competitive landscape.

While these workforce reductions signify short-term adjustments, they are indicative of Nike’s proactive stance in navigating uncertainties and positioning itself for long-term growth and sustainability. As the sportswear industry continues to evolve,