Nike to cut 2 percent of workforce

Sportswear giant Nike has confirmed mounting speculation that it is to layoff 2 percent of its workforce, a move that comes months after it launched a strategy designed to “streamline” the business.

Following an internal memo to employees from CEO John Donahoe, the company verified the decision in a statement to Footwear News that read: “Nike’s always at our best when we’re on the offence.

“The actions that we’re taking put us in the position to right-size our organisation to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger.

“While these changes will impact approximately 2 percent of our total workforce, we are grateful for the contributions made by all Nike teammates.”

Nike had previously hinted that layoffs were to be a part of its cost-saving strategy in December 2023, a plan that it said would aim to save up to two billion dollars over the next three years.

Among the possible moves it said it saw savings potential in that of simplifying product assortment, increasing automation, streamlining its organisation and leveraging scale to drive efficiency.

At the time, CFO Matthew Friend said: “As we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.”