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Nike Announces Workforce Reduction of Over 1,600 Employees
February 16, 2024
In a recent email sent out to all employees, Nike’s CEO, John Donahoe, addressed the harsh reality the company faces. He expressed regret over the decision to lay off 2% of its global workforce, which is over 1,600 employees.
In the email, Donahoe stated, “This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”
The layoffs are scheduled to begin Friday and will continue over the next week, with a second round expected to be completed by the end of May. With approximately 83,000 employees worldwide, the impact of these layoffs is significant. Notably, about 12,000 individuals work at the Beaverton headquarters, and it’s expected that a portion of these layoffs will occur there.
Donahoe emphasized that the cuts wouldn’t affect store employees, store managers, or distribution center workers. However, the precise extent of the layoffs remains uncertain, as the company had already begun quietly reducing its workforce in December.
Nike’s decision also reflects a broader challenge faced by the company during these times. With consumers becoming more cautious about spending their hard-earned money on nonessential items, Nike is feeling the pressure to adapt. This pressure intensified with the rise of competing footwear and activewear brands, causing Nike to reassess its market dominance.
As Nike grapples with these challenges, it must also confront the need to cut costs. In December, the company warned of the necessity to reduce expenses by $2 billion over three years.
Nike’s announcement of workforce reductions underscores the challenging landscape it navigates. Donahoe recognizes the gravity of the situation and is taking steps to address it. As Nike adapts to changing market dynamics, it remains to be seen how these layoffs will impact its future trajectory.
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