2024-02-16 08:35:33
Nike is cutting 2 percent of its jobs worldwide. This equates to approximately sixteen hundred jobs. The reason for the reorganization is lagging sales, as a result of which the sporting goods manufacturer wants to cut costs.
Nike announced in December that it wanted to save around 2 billion dollars (1.85 billion euros). Part of this includes the dismissal of 2 percent of the total of almost 84,000 employees. Furthermore, digitalization and improving logistics should contribute to better results.
The company’s competitors, such as Puma and adidas, also previously reported that revenues have been disappointing recently.
The round of layoffs at Nike begins according to The Wall Street Journal Friday already. A second round should follow at the end of March.
Recently, many large companies have announced that they are laying off employees. Earlier this week, tire manufacturer Continental announced that more than seven thousand employees will have to leave. Previously, UPS, Miele, Snapchat and FrieslandCampina, among others, also came up with major reorganization plans.
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