Over 1,600 Nike Jobs Will Be Cut As Part Of Cost-Cutting Program

(CTN News) – Nike, the world’s largest sportswear company, plans to cut more than 1,600 jobs in a cost-cutting move as a part of a cost-cutting move, as reported in Thursday’s Wall Street Journal.

It is expected that a second phase of the job cuts will take place by the end of the quarter, according to the report, which cites a memo that was sent to employees on Friday regarding the next phase of the job cuts.

In accordance with the WSJ report on the layoffs, there is no expectation that employees working in its distribution centers and stores, or in its innovation team, will be affected by them.

As the report quoted Nike CEO John Donahoe as saying in the memo to a board member, the shoe maker is using its resources to boost investment in categories like running, women’s apparel, and the Jordan brand, according to the report.

The request for information was not immediately responded to by Nike, so it was not possible for Nike to comment.

The company announced a $2 billion cost-saving plan in December, which it attributed to consumer caution, as it cut its forecast for the annual revenue and laid out a plan to cut costs in order to achieve the savings.

According to a previous report, Nike expects to have to incur employee severance costs between $400 million and $450 million during the current quarter as a result of implementing its restructuring program.

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