Nike will lay off more than 1,600 people
- February 17, 2024
- 0
Nike will lay off about 2% of its total workforce, or more than 1,600 people, to cut costs as it loses demand for its products. This was reported
Nike will lay off about 2% of its total workforce, or more than 1,600 people, to cut costs as it loses demand for its products.
This was reported by the Wall Street Journal, according to a report from Ukrinform.
The layoffs are expected to begin Friday and the second phase is expected to be completed by the end of the quarter.
Nike CEO John Donahue said the company will use its resources to increase investment in categories such as running, women’s apparel and the Jordan brand.
“We’re not doing our best right now, and ultimately I hold myself and my leadership team accountable for that,” Donahue said.
The discounts are expected to not affect store and distribution center employees as well as company experts. As of May 31, the company had approximately 83,700 employees.
Nike faces increasing competition from other brands. The company has also struggled with overstock inventories in recent years; This led to heavy discounts on clothing and shoes, hurting earnings.
As reported by Ukrinform, PayPal announced that it will lay off 9% of its global workforce, or approximately 2,500 people.
Photo: SHELBY KNOWLES/BLOOMBERG NEWS
Source: Ukrinform
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