Layoffs at the Big Swoosh: Nike slashes 2 percent of global workforce; 1600 jobs

Due to weaker profits this year, the sports giant has initiated cost cutting measures.

By  Storyboard18Feb 16, 2024 1:17 PM
Layoffs at the Big Swoosh: Nike slashes 2 percent of global workforce; 1600 jobs
In the third quarter, Nike had announced that it would incur about $400 million to $450 million in employee severance costs. According to a company filing, as per March 31, 2023, Nike had 83,700 employees. (Image source: Unsplash)

American athletic footwear and apparel corporation Nike has slashed its total workforce by two percent or more than 1,600 jobs. Due to weaker profits this year, the sports giant has initiated cost cutting measures like layoffs.

Since consumers have cut back on non-essential spending, Nike’s competitors, Adidas, Puma and JD Sports, too have highlighted weaker earnings.

In December 2023, Nike presented a $ 2 billion savings plan for the next three years. This included tightening the supply of some products, improving supply chain, reducing the layers of management and increasing automation use.

In the third quarter, Nike had announced that it would incur about $400 million to $450 million in employee severance costs. According to a company filing, as per March 31, 2023, Nike had 83,700 employees.

However, the layoffs would not impact employees in stores or distribution centres or those in its innovation team.

First Published on Feb 16, 2024 1:17 PM

More from Storyboard18

How it Works

Nestlé USA to remove synthetic food colors by mid-2026, joining industry-wide health push

Nestlé USA to remove synthetic food colors by mid-2026, joining industry-wide health push

How it Works

SEBI slaps Rs 25 lakh penalty on BSE for granting early access to corporate disclosures

SEBI slaps Rs 25 lakh penalty on BSE for granting early access to corporate disclosures

How it Works

From $30 to 300 billion! India’s online commerce set to 10X by 2030, reveals Bessemer Venture Partner report

From $30 to 300 billion! India’s online commerce set to 10X by 2030, reveals Bessemer Venture Partner report

How it Works

Prasar Bharati calls for stakeholder claims on Doordarshan Classics before 45-day deadline

Prasar Bharati calls for stakeholder claims on Doordarshan Classics before 45-day deadline

How it Works

Centre tightens Telecom Cybersecurity Rules, mandates mobile number validation for all service platforms

Centre tightens Telecom Cybersecurity Rules, mandates mobile number validation for all service platforms

How it Works

FSSAI’s alco-bev standard amendments open doors for innovation, but also creative avenues for surrogate ads

FSSAI’s alco-bev standard amendments open doors for innovation, but also creative avenues for surrogate ads

How it Works

LIC India leads BFSI sector TV advertising with 12% share: TAM

LIC India leads BFSI sector TV advertising with 12% share: TAM

How it Works

Bumble to cut 30% of global workforce as online dating sector faces inflection point

Bumble to cut 30% of global workforce as online dating sector faces inflection point