“Painful reality”
Nike cuts 1,600 jobs
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The US company Nike wants to lay off 1,600 employees – the job cuts are to be completed by the middle of the year. However, not all areas of the sportswear giant are affected.
The sportswear giant Nike apparently wants to reduce its workforce by around two percent as part of cost-cutting measures. As the Wall Street Journal reported, this would affect the jobs of 1,600 employees. The job cuts are to begin on Friday and be completed in a second phase by the end of the quarter, the report said, citing a memo to employees.
“It's the painful reality and I don't take it lightly,” Nike CEO John Donahoe wrote in the statement. “We are not currently performing at our best and my leadership team and I are responsible for that.” The company is increasing its investments in categories such as running, women's apparel and the Jordan brand, Donahoe continued. The job cuts will not affect employees in the stores, distribution centers and innovation teams.
The company lowered its annual sales forecast in December and presented a two billion dollar cost-cutting plan. The reason given for the austerity measures was restrained consumer spending. Nike had announced that it would spend around $400 million to $450 million on severance costs for employees in the current quarter. The company did not immediately respond to a request for comment on the job cuts.
