Nike to slash 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.

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