This Famous Shoe Company Is Now Laying Off 1,600 Employees

February 17, 2024

This famous shoe company is now laying off 1,600 employees, part of a plan that was first announced back in December.

Nike is laying off about 2% of its total workforce, the company confirmed to Retail Dive.

That amounts to more than 1,600 people, based on the 83,700 employees Nike reported in its latest annual report.

“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.”

A company spokesperson did not respond to questions about whether the layoffs were tied to the cost-savings plan, which referenced efforts to streamline the organization.

The cost-savings plan includes more than $400 million in charges, which were mostly set aside for severance costs.

Nike announced the cost-savings initiative after reporting Q2 revenues grew just 0.5% year over year.

The sportswear giant is projecting Q3 revenues will be down slightly year over year and that annual revenue will grow just 1%.

The plan is aimed at generating up to $2 billion in savings over the next three years, the majority of which will then be reinvested to drive growth, innovation and profitability.

In addition to streamlining efforts, Nike will simplify its product portfolio and increase its use of automation.

According to a memo about the layoffs cited by several news organizations, CEO John Donahoe told employees the company plans to invest in growth areas like running, women’s and the Jordan brand.

Based on that communication, the layoffs will not impact store workers or distribution center employees, and will take place in two phases, the first of which begins on Friday.

For more news and updates like this, opt-in for push notifications.

Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

A grocery store with 217 locations now closes for good, a move by its parent company which has left the community disappointed.

Foodland in Little Britain, Ontario — about 110 miles northeast of Toronto— announced on its Facebook on January 23 that the store would close on Saturday, March 16.

“Unfortunately, we’ve had to make a difficult decision to close the Foodland in Little Britain.

The decision to close a store is never one we make lightly, and various contributing factors are considered,” Sarah Dawson, public affairs lead for Sobeys, told kawarthaNOW.

The post stated that Sobeys, the parent company, decided not to renew its lease with the property owner.

Dawson told the outlet that Sobeys expressed its gratitude to the Little Britain community for its “loyal patronage over the years.”

The Facebook post stated, “I have seen a lot of changes over the years. Lots of people have come and gone but this is by far the saddest news for our amazing community in a long time.”

The post has 359 shares and 57 comments from members of the community.

“Reading this makes us sad. The 23 years we spent in the store and being involved and engaged in the whole community were the best working and fun times of our life,” wrote one saddened user.

“Let’s hope there is a plan in place that we are unaware of that makes life somewhat normal for all involved.”

“We have very much appreciated this community store and their quality meat selections at reasonable prices. So sad to hear this news,” said a customer.

“We shopped there for years. Really enjoyed the store and the people,” said another shopper.

“That store has been the anchor for our community. It will be missed terribly,” a user remarked.

For more news and updates like this, opt-in for push notifications.

Also Read: A US Company Now Declares An Unexpected Bankruptcy

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.

More Market News 📰