Nike plans to layoff hundreds of employees

US sportswear giant Nike, Inc. has said in a report to Bloomberg that it plans to cut hundreds of jobs. The news came a day after the company revised sales growth from 5 percent to just 1 percent. Nike, Inc. aims to cut 2 billion dollars in costs.

The media outlet reported that the company is cutting costs across all divisions because of poor sales last year. CFO Matt Friend shared "weaker sales prospects in China and the rest of the world" as the reason for the expected layoffs at Nike, Inc. Namely in Europe, the Middle East and Africa. The company also showed less growth in e-commerce, a sector it had high hopes for.

In the wake of this announcement, Nike's share prices fell 10 percent, Bloomberg reported. The company's situation reflects a broader trend in the sportswear sector, as other players such as JD Sports and Sports Direct are also struggling with falling share prices.

This is the second impactful round of layoffs for Nike. In 2020, during the Covid-19 pandemic, the company let 700 employees go.