Global Sports Wear Giant 'Nike' To Layoff Over 1,600 Employees; Details Inside

Nike layoff:  Global Footwear and sportswear giant 'Nike' said Thursday it will cut more than 1,600 jobs or 2% of its total workforce, as the company plans to cut costs after flagging weak profits this year. Nike's global competitors Adidas, Puma and JD Sports also warned of weaker earnings this year as consumers cut back on non-essential spending.

In December, Nike outlined a $2 billion savings plan over the next three years, it will tighten the supply of certain products, improve its supply chain, reduce management layers and increase the use of automation.

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The company also announced that it will pay Employee severance costs of $400 million to $450 million in the third quarter. As of May 31, 2023, Nike had approximately 83,700 employees. According to the details filed by the company. The Wall Street Journal, which first reported the news, said the cuts would begin Friday, with the second phase expected to be completed by the end of the current quarter.

The layoffs do not affect employees at the stores and distribution centres or those within its innovation group, the report said further.

(with Reuters input)

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