New Delhi: In the wake of a challenging year for various industries, global sportswear giant Nike has revealed plans to trim its workforce by hundreds of jobs as part of a cost-cutting strategy. The company aims to save $2 billion by implementing layoffs and increasing automation across certain services, according to reports by The Guardian.


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Facing a downturn in sales over the past year, Nike disclosed that the layoffs are a response to the need for organizational streamlining. The US-based apparel firm will allocate $450 million for restructuring and severance packages for affected employees. (Also Read: All About Hukumchand Saga: How MP Government Resolved This?)


Despite a marginal 1 percent increase in sales over the last three months, Nike has not witnessed a significant surge in its financial performance in 2023. While profit margins have improved, the company remains cautious about its retail outlook amid ongoing declines in sales. (Also Read: Claiming Mediclaim Benefits To Be Easy Soon As Govt Planning To Take THIS Big Step)


The aftermath of this announcement saw a 10 percent decline in Nike's share prices during after-hours trading. The company's situation mirrors a broader trend in the sporting apparel sector, as other players like JD Sports and Sports Direct also grapple with falling stock market values.


This marks the second significant round of job cuts for Nike, following the termination of 700 employees in 2020 during the global Covid-19 pandemic.