(AmericanProsperity.com) – Nike is planning on substantial layoffs, joining many other large companies that have been planning or taking part in massive layoffs over the past months.
Nike has just announced that they would be laying off about 2% of their workforce, which is equivalent to cutting about 1,500 jobs. Nike stated that this was part of a larger restructuring project they had in mind for the company. They are using this opportunity to better invest in other areas where they can expect higher growth such as their Jordan’s line, women’s shoes, and running.
Nike CEO John Donahoe said, “This is how we will reignite our growth. This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”
According to Nike, these layoffs will come out over two phases. The first round of layoffs will happen this week and then they will finish their layoffs around May, which marks the end of their fiscal fourth quarter.
It hasn’t been said what sectors of the company they will be cutting jobs from just yet, but they did say that it won’t affect retail workers or warehouse workers.
The cuts are starting due to an expected drop in spending from consumers especially in areas like their clothing and shoes, which of course is the main market for the Nike brand.
Nike did reveal back in December that they would be restructuring their business plan in order to cut costs by $2 billion over three years. The goal, according to Nike, is to focus on building up automation technology as well as simplifying its product assortment, reducingreduce layers of management, and “to drive greater efficiency.”
The company had shown that it had been silently laying off employees for weeks and that it had a broader layoff in mind in the future, which brings us to the layoffs discussed by Nike today.
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