Nike The company plans to lay off 740 employees at its Oregon headquarters before June 28, the company has told state officials.
The company notified state and local officials about workforce reductions at its headquarters in Beaverton, Oregon, in a notice ordered Workers' Adjustment and Retraining Act Friday.
Nike Vice President Michelle Adams wrote in the notice, which was published by Reuters Oregon Public Radio.
Two months ago, Nike CEO John Donahue told employees in a memo about plans to reduce its workforce by about 2%, or more than 1,600 employees, The Wall Street Journal reported on time. The company had approximately 83,700 employees as of May 31, 2023.
“Nike is always at its best when we're on the offensive. The actions we're taking put us in a position to right-size our organization to realize our greatest growth opportunities, as interest in sports, health and wellness has become stronger than ever,” the company said in a statement to USA TODAY. “Everyone.” While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all of our Nike teammates.
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Nike's layoffs are due to cost-cutting measures
The cuts come as part of a three-year, $2 billion cost-cutting plan Nike announced in December.
Nike is targeting cost-cutting as it expects a “low single-digit” decline in revenue during the first half of its 2025 fiscal year — which begins June 1. Officer Matt Friend said during Earnings call dated March 21, 2024.
Nike shares rose nearly 2% over the past week, but are down more than 11% so far this year and are down more than 23% over 12 months.
More Nike news: Olympic uniforms are flying and will Caitlyn Clarke get her own shoe?
Earlier this week, Nike's new uniforms for the 2024 Paris Olympic Track and Field Games were met with criticism for being too flimsy.
Meanwhile, Caitlin Clark, who on April 15 became the top pick in the WNBA draft, may be about to land a new eight-figure contract with Nike and get her signature shoe. The Athletic reported.
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