Nike To Lay Off 740 Employees At Oregon HQ
Nike, the renowned sportswear giant, is set to lay off 740 employees at its headquarters in Oregon, U.S., as part of cost-cutting measures following projected revenue declines for the first half of FY 2024-25. The decision, disclosed in a letter released by the company on Friday, is aimed at reducing costs amidst challenging market conditions.
Michele Adams, Nike's vice president for people solutions, announced that the "second phase of impacts" is scheduled to begin by 28 June. This move comes as part of Nike's broader initiative announced in December to trim $2 billion in costs over the next three years.
In February, Nike unveiled plans to cut approximately 2 per cent of its workforce, equivalent to more than 1,600 positions. As of 31 May 2023, Nike had around 83,700 employees.
Despite a nearly 13 per cent drop in shares since the beginning of the year, the company experienced a slight increase in after-hours trading. After-hours trading, which occurs outside regular market hours, involves the buying and selling of securities.
Nike's layoffs are part of a broader trend among companies in the U.S. and Canada to manage costs amid uncertain demand conditions.
