Nike set to reduce its workforce
This move follows the December announcement wherein the company disclosed plans to achieve up to $2 billion in cost reductions
Photo Source: market.us
Oregon: Nike Inc. is set to reduce its global workforce by approximately 2%, aligning with its strategy to curtail expenses amidst a subdued sales forecast and heightened market competition.
The Oregon-headquartered company refrained from specifying the exact number of employees affected, maintaining a current global workforce of approximately 83,700 individuals.
In a statement, Nike expressed its intent to optimize its organizational structure to capitalize on burgeoning growth prospects, notably in the realms of sport, health, and wellness, which are experiencing heightened interest.
This move follows the December announcement wherein the company disclosed plans to achieve up to $2 billion in cost reductions, encompassing employee downsizing and product line streamlining, prompted by prevailing consumer apprehension impacting sales performance.
The market response was reflected in a downturn in Nike's shares, which have remained relatively stagnant, experiencing a marginal 2% decline throughout the year.
The reduction in workforce will be implemented in two phases, as outlined in a Nike memo obtained by Bloomberg News. The initial phase is scheduled to commence on Friday, extending through the subsequent week, with the second phase slated for completion by the conclusion of the company's fourth fiscal quarter.
Reports by Willamette Week earlier on Thursday in the US had foreshadowed the planned 2% workforce reduction.
