Nike has disclosed that it will be letting go of 740 employees at its headquarters located in Oregon, U.S., as part of its strategy to decrease expenses following an anticipated revenue decrease in the first half of the fiscal year 2024-25. Michele Adams, the company's vice president for people solutions, mentioned that the next phase of these job reductions will begin by June 28, as Nike initiates a cost-saving measure announced in December to save $2 billion over the next three years.
In addition to the recent announcement to cut 740 jobs, Nike had previously publicized its intention to trim around 2% of its workforce, which equates to more than 1,600 positions. As of the end of May 2023, the sportswear giant had approximately 83,700 employees. Despite experiencing a slight increase in after-hours trading, Nike's stocks had dropped nearly 13% since the start of the year. After-hours trading involves the buying and selling of securities outside of the regular market hours of the exchange.
Nike is just one of the many companies in the United States and Canada that have recently announced layoffs as a means of managing expenses in response to an uncertain demand landscape. The company had signaled in March that its revenues for the first half of FY 2024-25 would see a decrease by a low-single-digit percentage, a move aimed at streamlining specific product lines to align with changing market dynamics.