Sportswear giant Nike will join the massive wave of layoffs hitting other large companies. The company will dispense with 2% of its staff (about 1,700 employees), as one of the points to achieve a spending cut of 2,000 million dollars and "right-size" the company to "get after our biggest growth opportunities."
'This is a painful reality': Nike will lay off 2% of employeeshttps://t.co/ai1o3s3ltS
— WFAA (@wfaa) February 17, 2024
$2-billion cut
According to its latest annual report, Nike employs approximately 83,700 people worldwide. In December, the company announced a cut to its revenue forecast and announced a $2-billion spending cut plan over the next three years. The main reason given was the slowdown in customer consumption, which they expect to increase during this period.
The layoffs, which began Friday, represent "a painful reality and not one that I take lightly" for Nike President and CEO John Donahoe. In an email accessed by WFAA, Donahoe noted that "we are not currently performing at our best, and I ultimately hold myself and my leadership team accountable."
'We will emerge stronger'
In statements reported by CNN, a company spokesperson explained: "The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities. While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates."
NBC reported that Donahoe guaranteed those who are let go "will receive a complete package of financial, healthcare and outplacement support services." In addition, he sent a message to ensure peace of mind for clients and investors: "We will emerge stronger and better equipped to fulfill our purpose of serve all athletes and grow the future of the sport."
