Nike Layoffs: Company To Fire More Than 700 Employees At Oregon Headquarters

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New Delhi: The American athletic footwear, Nike has decided to lay off 740 of its employees. The layoff will be done at its Oregan, U.S headquarters, according to a letter the company released on Friday. The move comes as the sportswear company wants to cut costs following a drop in revenue for the first half of FY 2024-25.

Second phase of layoff

In a letter sent to authorities, Michele Adams, the Vice President for people solutions stated that the “second phase of impacts” will start by June 28. This was followed by the sportswear giant’s announcement in December about a cost-cutting plan to cut 2 billion dollars over next three years. ()

Nike Layoff in February

Earlier, in February the sportswear giant let go a number of workers. It revealed plans to trim 2% of its total workforce which is over 1600 positions. Nike had around 83,700 employees as of May 31, 2023, as per Reuters report. ()

Market Response: Nike

The shares of the sportswear company saw minor increase in after-hours trading. However, There was a drop of 13 Percent since the beginning of the year. Nike is one of several companies in the U.S and Canada which has recently announced the decision of layoffs to handle the cost amid uncertain market scenario. 

Revenue Forecast for FY 2024-25

Last month, in March the company revealed that its revenues for the first half of FY 2024-25 would be decreased by a single-digit percentage. This is because it is planning to streamline certain product lines.