Nike forges ahead with European layoffs as part of multiyear cost-cutting drive

Nike is streamlining its European operations with a multiyear cost-cutting drive. This includes layoffs of approximately 2 percent of its workforce, including cutting staff at its European hub in Hilversum, The Netherlands.

The staff reductions at the campus, known internally as EHQ and home to over 2,000 employees, come as Nike aims to slash 2 billion dollars in costs globally, reported Bloomberg. While the company had previously announced layoffs affecting around 750 employees at its global headquarters in Beaverton, Oregon, and some staff at its Converse subsidiary in Boston, the dismissals in Europe were delayed due to differences in local labour laws, Bloomberg said.

In an internal memo distributed to workers in February, Nike's Chief Executive Officer, John Donahoe, had signaled that planned cuts in Europe, the Middle East, and Africa would follow a different timeline than those in the company's home market of North America, where the staff reductions occurred in two phases earlier this year, starting in February. A statement at the time said: "The actions that we're taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health, and wellness have never been stronger."

The streamlining of Nike's European operations is part of the company's broader strategy to optimise its global workforce and align resources with its most significant growth opportunities, reflecting the intensifying competition and evolving consumer preferences in the sportswear industry.

Nike said it plans to release its fourth quarter fiscal 2024 financial results on Thursday, June 27th.