Nike is added to the growing list of corporations announcing staff layoffs, CNN reports.
Nike CEO John Donahoe just sent out a long email announcing job cuts at the company, starting tomorrow. The layoffs were forecasted on Nike’s last earnings call, in December. pic.twitter.com/Emg3xlR2OM— brendandunne (@brendandunne) February 16, 2024
Nike began cutting its revenue forecast and shortly after announced cost cuts after concerns started to grow surrounding consumers slowing down on their spending. To make up for the profit decrease, Nike said they are seeking up to $2 billion in savings over the next three years. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities,” the spokesperson said.
“While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
Nike not only faces stiff competition from sneaker brands Hoka and On Cloud, but also must deal with customers changing their shopping habits. Items like expensive sneakers and athletic wear, once popular throughout numerous demographics, are being traded in for basic needs and life experiences such as travel.
Retailers are also pivoting. Corporations are simplifying the shopping experience by leveraging technology with options like self-checkout and other features to reduce friction in stores. In addition, retailers have integrated digital offerings in their physical stores for a more streamlined shopping experience. Nike started to pay attention to changes like these. Nike’s finance chief Matt Friend said their new approach touches on “indications of more cautious consumer behavior around the world,” including in Europe and China.
“Nike has a proud history where the most challenging moments bring out the best in us, individually and as a team. I know we will come together to respond once again, and I am confident in our future.”
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Source: Black Enterprise
