Nike recently announced a 2% cut in its global workforce, as part of its strategy to reduce costs and face declining sales and increasing competition. In a message to employees, CEO John Donahoe acknowledged that this decision is painful, but necessary to improve the company’s performance. Although no exact figures have been given, it is estimated that around 1,600 workers worldwide will lose their jobs as a result of this measure.
In addition to the job cuts, Nike also announced a plan to reduce up to 2 billion dollars in annual costs, including severance payments and streamlining its product line. The first layoffs are expected to take place in the next few days, while the rest will be completed before the end of the quarter. These changes have generated a 4% drop in the company’s shares on the stock market.
To maintain its competitiveness in the market and achieve sustainable success, Nike plans to focus on the women’s market and expand its Jordan footwear line. These measures show a commitment to adapt to market demands and stay ahead of the curve.
While downsizing is difficult, Nike joins this wave of mass layoffs, more than 150 companies have announced job cuts so far in 2024, leading to more than 39,600 people losing their jobs. It is clear that these measures are becoming increasingly common in a highly competitive and changing market.
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