Nike Confirms 740 Job Cuts at Oregon HQ Amid Fiscal Adjustments

Nike Confirms 740 Job Cuts at Oregon HQ Amid Fiscal Adjustments

Following a warning that it would experience a decrease in revenue during the first half of the fiscal year 2025, Nike has announced that it will be laying off around 740 people at its world headquarters in Oregon. This comes as the leading manufacturer of athletic apparel seeks to reduce expenses.

According to Michele Adams, Nike’s vice president for people solutions, the “second phase of impacts” would start at the company’s headquarters by the 28th of June. This information was provided in a warning that was legally mandated to state authorities.

After-hours trading saw a little increase in the value of the company’s shares. This year, they have experienced a drop of approximately 13%.

In December, Nike revealed a strategy to save $2 billion over the next three years to reduce costs. In February, the company said that it would reduce around 2% of its overall staff, which would amount to more than 1,600 positions.

As of the 31st of May in 2023, it had approximately 83,700 employees.

New rounds of layoffs have been announced by some corporations in the United States and Canada, after the wave of reductions that occurred in 2023. These companies are attempting to reduce their expenses in response to an uncertain demand environment.

As a result of the company’s efforts to reduce the number of franchises it operates, Nike announced in March that its revenues for the first half of the fiscal year 2025 would decrease by a percentage in the low single digits.

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