NIKE ANNOUNCES SECOND LAYOFFS AMID REVENUE DECLINE, THESE MANY EMPLOYEES TO BE FIRED

Nike has announced plans to lay off approximately 740 employees at its world headquarters in Oregon, according to a letter released on Friday. The move comes as the leading sportswear maker seeks to tighten its budget following a warning of a revenue decline in the first half of fiscal 2025.

Second Phase of Layoffs

Michele Adams, Nike's vice president for people solutions, outlined the "second phase of impacts" in a letter sent to state authorities. The layoffs are expected to commence by June 28, affecting operations at the company's headquarters.

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Cost-Cutting Measures

According to the Reuters report, this announcement follows Nike's earlier cost-saving initiatives, including a plan to save USD 2 billion over the next three years, announced in December. In February, the company revealed its intention to cut around 2 per cent of its total workforce, amounting to more than 1,600 roles. As of May 31, 2023, Nike employed approximately 83,700 individuals.

Market Response and Future Outlook

Despite the news, Nike's shares saw a marginal increase in after-hours trading. However, they have experienced a decline of nearly 13 per cent since the beginning of the year. The decision to downsize comes amid a trend of layoffs among companies in the U.S. and Canada, as they seek to manage costs in response to uncertain market demand.

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Revenue Forecast for Fiscal 2025

The report added that in March, Nike signaled a projected decrease in revenues for the first half of fiscal 2025, citing plans to scale back on certain product franchises.

2024-04-20T04:58:38Z dg43tfdfdgfd