Nike's Oregon HQ faces second phase of layoffs amid cost-cutting drive
Nike plans to lay off over 700 people working at its headquarters in Oregon. The stock market reacted to the layoff announcement, with shares gaining value. This year, the company also announced it would cut about 2 percent of its total workforce.
The company Nike plans to lay off about 740 employees from its main headquarters in Oregon. These details were revealed in a Friday letter, which is part of the company's strategy to reduce costs. This decision was made after a warning about a possible decline in revenue in the first half of the fiscal year 2025 – Reuters reports.
Second phase of layoffs
Michele Adams, Nike's Vice President of People Solutions, informed state authorities in a legally required notice that "the second phase of layoffs" will begin by June 28 at the main headquarters.
In response to this news, the company's shares slightly increased after-hours trading. However, it is worth noting that over the course of this year, they have fallen by nearly 13 percent.
In December, Nike announced a $2 billion savings plan to be realised over the next three years. In February, the company also announced it would reduce about 2 percent of its total workforce, equating to over 1,600 positions. As of May 31, 2023, the company employed about 83,700 people.
In March, Nike signalled that its revenue might decline by a low single-digit percentage in the first half of the fiscal year 2025. The company plans to reduce some franchises, which is part of a strategy to reduce costs – Reuters reports.
