In a dramatic cost cutting exercise to save $2 billion, Nike is to lay off an estimated 1600 people.
According to Vogue Business, the lay-offs have already begun and include “multiple senior leaders across technology and marketing”, including “senior directors in Nike’s technology innovation office”. There will be a second round of job cuts in May.
The three-year plan has been put into place after share prices dipped – down 13 percent on last year – and the company had to decrease its sales outlook. The company pointed to increased competition from smaller brands as well as consumers cutting their spending in the cost of living crisis.
In a statement emailed to Vogue Business, a Nike representative said: “Nike’s always at our best when we’re on the offence. The actions that we’re taking put us in the position to rightsize 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 two percent of our total workforce, we are grateful for the contributions made by all Nike teammates.”
An internal memo laid out plans for more innovation, “distinctive storytelling and differentiated marketplace experiences” with Vogue Business predicting gaming to be a focus.
