Nike to cut hundreds of jobs in December in a cost-saving bid
Last week, the sportswear giant cut its annual revenue forecast and laid out a $2 billion cost-saving plan
Global sportswear brand Nike is planning to cut hundreds of jobs in December 2023, said a report. The company is also planning to increase use of automation as part of attempts to save $2 billion in costs over the next three years.
Last week, the sportswear giant cut its annual revenue forecast and laid out a $2 billion cost-saving plan.
The sportswear giant sees full-year revenue rising about 1% after fall in the current quarter and a modest increase in the subsequent one. The company said it’s also seeing lower levels of growth from e-commerce, which has been a bright spot in the retail industry.
The Air Jordan 1 shoe maker also said that it plans to cut supplies of key product lines to manage costs.
Following the announcement, shares of Nike slipped as much as 12% on Friday.
Nike is also planning to simplify its product assortment, increase automation, and launch fresher styles to attract consumers.
Nike also said it would incur about $400 million to $450 million in employee severance costs in the current quarter, but did not specify the number of jobs it would cut.
At the end of May this year, Nike had 83,700 employees. In 2022, the company had 79,100 employees.
Nike’s chief financial officer (CFO) Matt Friend said on the company’s conference call that the new outlook reflects “indications of more cautious consumer behavior around the world."
