Nike to cut 2%, or 1,600 jobs, as athletic wear giant cuts costs and reinvests in areas like health

NEW YORK – Nike is reducing 2% of its world staff, or little over 1,600 jobs, as the athletic wear giant targets to cut costs and reinvest its financial savings into what it sees as giant expansion areas like game, health and wellness.

Nike, based totally in Beaverton, Oregon, joins a rising selection of corporations together with Estee Lauder and Levi Strauss & Co. that experience introduced activity cuts in contemporary weeks.

“Nike’s always at our best when we’re on the offense,” Nike stated in an emailed reaction confirming the layoffs.

As of May 31, 2023, Nike hired more or less 84,000 employees, in accordance to its annual file.

The Wall Street Journal’s website online used to be first to file the cuts.

In December, Nike lowered its annual gross sales outlook for the fiscal 12 months after reporting second-quarter gross sales effects that fell wanting corporate expectancies. The lowered outlook got here as corporate executives informed analysts that it has noticed extra wary shopper conduct international in an “uneven macro environment.”

At the time, Nike said it would be cutting up to $2 billion over the next three years as it aims to simplify product assortment and increase automation and use of technology. It said most of the savings would be used to accelerate innovation and drive speed and scale.

“We see an outstanding opportunity to drive long-term profitable growth,” stated John Donahoe, president and CEO, in a remark in December. “Today we are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness.”

Nike’s stocks fell a little bit greater than 4%, or $4.31, to $101.74 in morning buying and selling on Friday.