Nike Plans To Cut 1,600 Jobs

Nike revealed plans to decrease its workforce by nearly 2 per cent overnight, or more than 1,600 positions, as part of a cost-cutting strategy following a year of lower profitability.

According to Reuters, the decisions came after Nike announced a $2 billion cost-cutting strategy over three years in December, which included steps such as optimising product supply, improving supply chain efficiency, reforming management hierarchies and increasing automated procedures.

It also stated that it expects to incur employee severance expenses ranging from $400 million to $450 million in the third quarter.

According to the Wall Street Journal, the upcoming job layoffs will begin soon, with a first phase beginning on Friday and a following phase ending at the end of the current fiscal quarter.

According to Reuters, the reported layoffs are not expected to affect employees at retail stores, delivery hubs or the company's innovation team.