Nike Announces Major Job Cuts at Oregon Headquarters Amid Cost-Cutting Strategy

Key Points

• Nike (NKE) is cutting approximately 740 jobs at its Oregon headquarters by June 28, 2024, as part of a cost-cutting initiative.
• The layoffs are a strategic move to achieve $2 billion in cost savings over three years without impacting critical operations.
• Despite the workforce reduction, Nike is focusing on new strategies and product innovations to strengthen its market position.

In this news

Nike Inc. (NKE) has confirmed plans to significantly reduce its workforce at its World Headquarters in Beaverton, Oregon, impacting around 740 employees by June 28, 2024. This decision is part of a broader strategy to streamline operations and cut costs in response to a slowdown in the athletic apparel market. Nike CEO John Donahoe previously announced a 2% reduction in the global workforce, aiming to eliminate up to 1,500 jobs to achieve $2 billion in cost savings over three years.

The layoffs, which began in February, are part of what the company describes as the 'second phase of impacts' of its restructuring efforts. These measures are focused on maintaining efficiency without affecting Nike's stores, distribution centers, or U.S. manufacturing facilities. Despite the workforce reduction, Nike is actively pursuing new strategies, including potential collaborations and product launches, to bolster its market position.

The company's stock performance has seen a slight decline of 0.71% following the announcement, although it still maintains a net gain for the week. As Nike navigates through these changes, the focus remains on optimizing core operations and divesting less critical tasks, which is expected to enhance the company's capacity to prioritize key initiatives and potentially lead to long-term growth despite current market challenges.