According to a report from the Wall Street Journal on Thursday, sportswear giant Nike is planning to trim its workforce by approximately 2%, equating to more than 1,600 jobs, as part of a cost-cutting initiative. The layoffs are slated to commence on Friday, with a second phase anticipated to be finalized by the end of the quarter, as per an internal memo cited in the report.
The reduction in staff is not anticipated to affect employees working in stores, distribution centers, or those within its innovation division, states the WSJ report. CEO John Donahoe, as mentioned in the memo, highlighted that Nike intends to redirect its resources towards bolstering investments in segments such as running, women’s apparel, and the Jordan brand.
Nike has yet to respond to a request for comment from Reuters.
This development follows the company’s announcement in December, wherein it revised down its annual revenue forecast and outlined a $2 billion cost-saving strategy, attributing it to cautious consumer spending. Nike had disclosed plans to allocate approximately $400 million to $450 million towards employee severance expenses in the ongoing quarter.
