Beaverton, Oregon – Nike is set to lay off 740 employees at its Oregon headquarters by June 28, following a notice sent to state officials. The sportswear giant informed the state and local authorities about the impending job cuts at its Beaverton headquarters, as required by the Worker Adjustment and Retraining Notification Act. This reduction in workforce is part of the company’s plan to streamline operations and adjust to market demands.
The layoffs come as part of Nike’s larger strategy to cut costs by $2 billion over the next three years, a plan announced in December. Facing a projected decline in revenue for the first half of its 2025 fiscal year, Nike aims to realign its operations to focus on key growth opportunities. The company’s CFO, Matt Friend, highlighted the need for transitioning the product portfolio during a recent earnings call.
Despite recent fluctuations in its stock performance, Nike remains committed to optimizing its operations and positioning itself for future growth. The company’s leadership emphasized the importance of adapting to changing consumer interests in sports, health, and wellness. While the layoffs will affect about 2% of Nike’s total workforce, the company expressed gratitude for the contributions of all employees.
In other news related to Nike, the brand’s new 2024 Paris Olympic track and field uniforms have sparked controversy for their design choices. Additionally, basketball standout Caitlin Clark, recently drafted as the top pick in the WNBA, is reportedly in talks with Nike for a lucrative endorsement deal and the possibility of her own signature shoe. These developments highlight Nike’s continued influence in both the sports and fashion industries.
As Nike navigates through these changes, the company remains focused on staying competitive in a dynamic market landscape. The brand’s actions reflect a broader industry trend of adapting to evolving consumer preferences and optimizing business operations for long-term success. Nike’s strategic decisions, including the recent layoffs, underscore the company’s commitment to sustaining growth and innovation in the face of challenges.