Nike to Reduce Workforce by Approximately 1,700 Positions
Nike will lay off about 2% of its workforce, or about 1,700 workers, to cut costs by up to $2 billion. A spokesman for the sportswear giant said the measures were aimed at ensuring the organization benefited from significant growth.
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Although only a small percentage of its employees were affected (approximately 83,700 employees worldwide as of May 31, 2023), Nike is grateful for the contributions of its entire team.
The decision to lay off workers comes after Nike revised the size of its workforce. December revenue forecasts were lowered due to concerns about a slowdown in global spending. The company recognizes shifts in consumer behavior as people prioritize values and experiences in purchasing decisions such as luxury sneakers and sportswear. It also faces intense competition from new brands such as Nike, Hoka and On Cloud.
In announcing its latest financial results, Nike Chief Financial Officer Matt Friend cited signs that global consumer behavior is cautious and leading to economic growth. Competition between China and Europe. China is struggling with weak consumer confidence, weak infrastructure and weak exports, casting a shadow over the world’s second-largest economy.
Recent data in Europe shows that economic growth narrowly outpaced the economy. Germany, the region’s largest economy, has made a 2023 commitment for the first time since the beginning of the Covid-19 epidemic.
