2024-02-17 16:11:21
Nike. [사진 제공 = 연합뉴스]
Sports equipment company Nike is laying off more than 1,600 employees to cut costs.
On the 15th (local time), the Wall Street Journal (WSJ) reported that Nike CEO John Donahoe said in a recent memo to employees that the company would focus its resources on sectors such as running, women’s clothing, and the Jordan brand. did.
“This is a painful reality and we do not take it lightly,” Donahoe said. “We are not performing at our best and that is entirely the responsibility of me and the management team.”
He added, “In order to compete, we need to reduce, convert, and sell less important tasks to focus our capabilities on the most important tasks.”
Nike, headquartered in Beaverton, Oregon, USA, had approximately 83,700 employees as of May last year. The job cuts will begin on the 16th, and the second stage of job cuts is scheduled to be completed by the end of March.
The job cuts are not expected to affect store or distribution center staff or innovation team staff.
Nike lowered its sales forecast for this year in December last year and explained that it plans to reduce costs by up to $2 billion over the next three years through job cuts and organizational simplification.
Meanwhile, Nike has faced fierce competition in the industry, but has also been criticized for failing to produce innovative new products. In addition, due to increased inventory in recent years, clothing and footwear items were sold at significant discounts, which took a toll on profits.
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