Feb. 16 (UPI) — Nike said late Thursday it’s laying off more than 1,500 people, 2% of its workforce, in what the company described in an internal email memo from CEO John Donahue as a restructuring.
Donahue said, “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.”
He said the job cuts would “reignite our growth.”
CNN, citing a Nike statement, said close to 1,700 people would lose their jobs.
“The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities,” a Nike spokesperson said. “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
The layoffs will happen in two phases beginning Friday, according to Nike. The second round will be done by the end of Nike’s fiscal fourth quarter at the end of May.
In December Nike announced a $2 billion cost-cutting plan to be carried out over three years and said it expected revenue to “soften” in the second half of 2024.
The company said then that the move would cost $400 million to $450 million, primarily associated with employee severance costs.
Nike 2023 revenues were $13.4 billion with net income of $1.6 billion, a 19% increase over 2022.
