A massive shoe retailer now announces a new wave of layoffs to hit headquarters this summer, affecting over 700 employees.
Nike has announced its ‘second phase’ of mass layoffs, effective June 28, according to a Worker Adjustment and Retraining Notification (WARN) filing.
A total of 740 employees will be impacted in the retailer’s home state.
The layoffs are part of the 2% workforce reduction Nike announced in February, which is taking place across two phases, the company confirmed via email.
Nike said job titles and the number of employees in each category would be provided at a later date, once the company has determined them.
Bumping rights are not available for the impacted employees, reports Retail Dive.
“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement.
“While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
The layoffs are tied to a cost-savings plan Nike unveiled in December, which is aimed at generating up to $2 billion in cumulative savings over three years.
Based on the company’s last annual report, the layoffs to 2% of its total workforce will impact more than 1,600 people.
Savings from the plan are set to be reinvested in driving growth, innovation and profitability.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A massive clothing retailer is now closing 100 stores after it officially announced it is filing for Chapter 11 bankruptcy.
The popular mall and clothing company Express has filed for bankruptcy and will close over 100 locations.
The bankruptcy will result in the sale of about 95 Express stores and all of its UpWest Express locations.
The company also owns Bonobos but has not announced any plans to close its locations.
Express “expects to conduct business as usual” at the remaining stores, it said in a press release.
The company did not specify which stores would shut.
There are currently around 530 Express locations.
While there has not yet been any official list of closing stores, one New Jersey location is already slated for closure.
The store, in Paramus Park Mall, recently posted signs for a liquidation sale.
Discounts there are currently up to 70% off.
It’s not fully clear whether this store is counted in the roughly 95 the chain plans to close.
However, local shoppers won’t have to travel far, however.
There is another Express located at the Garden State Plaza mall, also in Paramus.
The company is filing for bankruptcy despite a hefty influx of cash from the federal government.
Express said last week it received $49 million from the IRS through the CARES Act.
The act, passed by the Trump administration in 2020, pays out stimulus money to make up for losses associated with Covid-19.
Pending bankruptcy court approval, the company says it has found $35 million in new financing from some existing lenders.
Bankruptcy allows companies to more easily liquidate assets to pay off mounting debt.
An example of asset liquidation is the sale of a store.
Express is only one of several companies facing high-profile bankruptcies this year.
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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
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