By Ricardo Lezama 
Nike has experienced a decline in sales and market value after announcing that its revenues will decrease in the third fiscal quarter. They also forecasted a low single-digit increase in the fourth quarter. This has caused concern among analysts and experts as it reflects the current economic uncertainty.
It’s stock price dipped suggesting a buying opportunity for those looking to hold long term. However, some analysts are cautioning that the company may not be generating enough buzz on new products.
The impact of Nike’s promotion and branding strategy on workers.
Nike invests a significant amount in promotion and branding by partnering with various influential athletes. However, this strategy can create a more precarious situation for their workers, as they may be more susceptible to layoffs, considering themselves “replaceable.”
According to Bloomberg, Nike is also taking steps to optimize the organization, resulting in anticipated pre-tax restructuring charges of approximately $400 to $450 million. These charges are mainly associated with employee severance. Even with the layoffs, the restructuring process comes at a significant cost for Nike.
Ultimately, Nike’s goal is to reduce costs for the coming years. This defensive approach indicates a cautious stance for the next three years. Nike aims to become more efficient and adapt to economic and market conditions, which involves taking measures to control expenses and ensure the long-term viability of the company. This could also be something we should consider on a personal level.