Nike to Lay Off 1,400 Employees Amid Restructuring Efforts
Nike announces roughly 1,400 layoffs in latest round of cuts
Fox Business
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Nike has announced the layoff of approximately 1,400 employees from its Global Operations team, primarily affecting its technology division across North America, Asia, and Europe. This move is part of a broader restructuring strategy aimed at streamlining operations and enhancing supply chain efficiency.
- 01Nike will lay off around 1,400 employees, nearly 2% of its global workforce.
- 02The layoffs will mainly impact the technology division and span multiple regions.
- 03This decision follows previous job cuts and is part of Nike's ongoing restructuring efforts.
- 04Nike aims to simplify operations and improve responsiveness through these changes.
- 05The company anticipates a sales decline of 2% to 4% this quarter, with a significant drop expected in China.
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Nike has announced it will lay off approximately 1,400 employees from its Global Operations team, which constitutes nearly 2% of its global workforce. The layoffs will primarily impact the technology division and will take place across North America, Asia, and Europe. Chief Operating Officer Venkatesh Alagirisamy emphasized that these cuts are part of a broader restructuring effort, which has already seen previous job reductions, including 775 jobs in January and over 1,600 in February 2024. The company aims to streamline its supply chains for materials, footwear, and apparel by centralizing technology operations in Beaverton, Oregon, and the Nike India Technology Center. As part of this effort, Nike plans to relocate some Converse manufacturing closer to its factory partners. Despite a recent rise in shares by 0.5% in after-hours trading, Nike's stock has lost more than half its value over the past three years. The company is forecasting a 2% to 4% drop in sales this quarter, particularly noting a 20% decline in its key market, China.
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The layoffs may lead to increased unemployment in the regions affected and could impact local economies reliant on Nike's operations.
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