Nike to Lay Off 740 Employees at Oregon Headquarters
Nike has announced plans to lay off 740 employees at its Oregon headquarters by June 28, as reported by Reuters and Oregon Public Broadcasting. The decision is part of the sportswear giant’s ongoing efforts to implement workforce reductions and cost-cutting measures.
The layoff notification, mandated by the Worker Adjustment and Retraining Notification Act, was sent to state and local officials on Friday. In the notice, Nike’s Vice President Michele Adams stated that the company is embarking on a “second phase of impacts” in its Oregon headquarters.
Two months ago, Nike’s CEO John Donahoe spoke of the company’s plans to reduce its workforce by approximately 2%, which would amount to more than 1,600 employees, according to The Wall Street Journal. Nike presently has a workforce of about 83,700 employees.
Company’s Growth Opportunities Amid Workforce Reduction
“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 organization to get after our biggest growth opportunities as interest in sport, health, and wellness has never been stronger,” stated Nike in a press release to USA Today. The company expressed its gratitude for all the contributions made by its employees, although approximately 2% of the workforce will be affected by the layoffs.
Nike’s Cost-Cutting Measures
The layoffs at Nike are part of a three-year plan initiated by the company to reduce costs by $2 billion. This plan was originally announced by Nike in December and is focused on addressing the projected decline in revenue during the first half of the company’s 2025 fiscal year, beginning on June 1. Nike’s Chief Financial Officer Matt Friend mentioned during a recent earnings call that the company is navigating a transitional phase for its product portfolio.
Additional Nike News
Nike’s new track and field uniforms for the Paris 2024 Olympics have sparked controversy due to their revealing design. In other news, Caitlin Clark, the top pick in the WNBA draft, is reportedly on the verge of signing a lucrative contract with Nike and may even receive her own signature shoe.
