In a strategic move to enhance its focus on key growth areas like sport, health, and wellness, Nike is set to cut 2% of its global workforce, equivalent to over 1,600 jobs. The athletic wear giant, headquartered in Beaverton, Oregon, is joining the ranks of companies such as Estee Lauder and Levi Strauss & Co. in implementing job cuts as part of cost-cutting measures and a broader reinvestment strategy.
Quoting Nike’s response, “Nike’s always at our best when we’re on the offense,” the move aligns with the company’s commitment to staying proactive in the market. As of May 31, 2023, Nike had approximately 84,000 employees, according to its annual report.
The Wall Street Journal first reported the workforce reduction, highlighting a trend among major companies. In December, Nike revised its annual sales outlook after second-quarter results fell short of expectations. The company aims to cut up to $2 billion over the next three years, focusing on simplifying product assortment and increasing automation and technology use. The majority of the savings will be redirected to accelerate innovation and boost speed and scale.
John Donahoe, Nike’s president and CEO, emphasized the long-term growth potential, stating, “We see an outstanding opportunity to drive long-term profitable growth.” Despite the positive outlook, Nike’s shares experienced a slight dip of just over 4% in morning trading, falling to $101.74 on Friday.