Nike to cut 1,600 jobs in cost trimming measure
As a result the company expects growth of around 1% for the full year, below its prediction of mid-single digit growth
Nike is set to cut 1,600 jobs, around 2% of its workforce, in an attempt to trim its costs after worse than expected sales in the second half of 2023.
In an internal email seen by The Wall Street Journal the company stated it would use its resources to increase investment in categories including running, women’s apparel and the Jordan brand.
The cull will take place in two phases with one beginning this week (19 February) and the other will take place before Nike’s fourth quarter.
The retailer downgraded its sales expectations in December following sales growth of just 1% up to £10.6bn.
As a result the company expects growth of around 1% for the full-year, below its prediction of mid-single digit growth.
Nike said in a statement: “Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organisation to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger. While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
