Nike is gearing up for a massive layoff period which will see staff reduced by 2 percent, with close to 1,700 jobs on the line.
The move was announced in a company email that went into circulation on Thursday night, with the sportswear giants outlining plans to cut up to $2 billion in costs.
“The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities,” a company spokesperson said on Friday, per CNN. “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
Nike had 83,700 employees around the world as of May 31, 203, according to its latest annual report.
With consumers thought to be lessening their spending on a worldwide scale, Nike has had to slash its revenue forecast and is now looking to save around $2 billion over the next three years.
The company is facing serious competition from upstarts such as Hoka and On Cloud while people are now said to prefer spending money on experiences such as travel as opposed to the latest trends in clothing and footwear.
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Nike’s head of finance, Matt Friend, said the brand’s outlook reflected “indications of more cautious consumer behavior around the world” in December.
Both China and Europe have seen their economies take major hits, with the latter only narrowly avoiding a recession over the last few months of 2023.
