Nike to lay off hundreds of workers as part of $2B cost-cutting plan

Employees at Nike are bracing for job cuts after the sportswear giant announced a major restructuring charge in its latest earnings report.

What’s happening at Nike?

Nike said in its Q2 2024 earnings release that it’s “identifying opportunities to deliver up to $2 billion in cumulative cost savings over the next three years.”

Areas of potential savings include:

• Streamlining the organization
• Simplifying product assortment
• Increasing automation and use of technology
• Leveraging the company’s scale to drive greater efficiency

Nike expects to incur “pre-tax restructuring charges of approximately $400 million to $450 million that will largely be recognized in the third quarter of fiscal year 2024, primarily associated with employee severance costs.”

According to The Oregonian, hundreds of jobs are likely on the chopping block. In 2020, the company predicted that it would incur between $200 million and $250 million in severance costs when it eliminated 700 positions.

“We see an outstanding opportunity to drive long-term profitable growth,” CEO John Donahoe said in the release.

“[We] are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness.”

The update comes after reports claimed that the company had been quietly laying off staff over the past several weeks.

SEE ALSO
• ‘Quiet Layoffs’: What employees need to know
• What Canadians need to know about ‘loud layoffs’
• ‘Quiet firing’ in Canada: Employee rights

Nike layoffs in Canada

It remains unclear if Canadian employees are affected by Nike’s cost-cutting plan.

According to the company’s LinkedIn page, it has more than 1,100 workers in the country.

Termination agreements for Nike Canada employees

In Canada, non-unionized employees at Nike are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Rights to severance for provincially regulated employees
• Severance packages during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The restructuring at Nike comes after a flurry of layoffs in 2023.

Big names, including Cruise, Etsy, Spotify, RBC, TD Bank, Broadcom, Amazon, AbCellera, Unity, Canadian Tire, PwC, Maersk, Nokia, and Ubisoft, have announced deep job cuts as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Panera laying off 17% of corporate staff ahead of IPO
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.