Beaverton, Oregon – Nike Inc. is set to cut about 740 jobs at its headquarters by late June as part of a long-term cost-cutting strategy. This move marks the second phase of layoffs for the world’s largest sportswear company, led by Chief Executive Officer John Donahoe, who aims to reduce the global headcount by 2% to achieve up to $2 billion in cost savings over the next three years.
The initial phase of job cuts at Nike began in February, with the company planning to complete the process by the end of its fiscal year. According to a filing with the state of Oregon, Nike’s vice president of people solutions, Michele Adams, confirmed the upcoming job reductions as part of the company’s restructuring efforts.
In a memo reviewed by Bloomberg News, Donahoe emphasized the necessity of streamlining operations to enhance competitiveness. He stated, “To compete effectively, we must streamline, reorganize, and reallocate resources to focus on our core priorities.”
Nike’s cost-cutting measures come in response to challenges in the global market, particularly in China, where sales have fallen short of expectations. By trimming its workforce and reallocating resources, Nike aims to strengthen its position in the highly competitive sportswear industry.
By consolidating its operations and prioritizing essential tasks, Nike seeks to enhance its efficiency and effectiveness in delivering innovative products to consumers worldwide. The company’s strategic restructuring is part of its broader efforts to adapt to changing market conditions and drive sustainable growth in the long term.