Sportswear manufacturer NIKE is set to lay off approximately 740 employees at its Oregon headquarters in the US, Reuters reported.
The layoffs, referred to as the ‘second phase of impacts’, are expected to commence by 28 June, as stated by Nike People Solutions vice-president Michele Adams in a legally mandated notice to state authorities.
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This move is part of a broader cost-reduction strategy announced in December last year to save $2bn over the next three years.
The company’s shares experienced a marginal increase in after-hours trading, despite a nearly 13% decline since the start of the year.
Earlier this year, Nike announced a workforce reduction announcement of approximately 2% of its employees, equating to more than 1,600 jobs, would be cut to mitigate expenses amid challenging product demand.
Nike’s current employee count stands at approximately 83,700 as of 31 May 2023.
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By GlobalDataIn its financial year 2024 (FY23) third-quarter results, Nike revealed an anticipated low-single-digit percentage decrease in revenues for the first half of FY25 while also planning to scale back on certain franchises.
Despite these projections, the company’s revenues for the quarter saw a slight increase to $12.42bn from $12.39bn year-on-year.
The trend of workforce reductions is not isolated to Nike, as several businesses in the US and Canada have also announced layoffs to manage costs against a backdrop of unpredictable demand.
Earlier this year, Amazon announced layoffs in its ‘Buy with Prime’ unit.
