Nike plans to slash over 1,600 jobs in cost-cutting drive

Sportswear giant Nike plans to reduce its workforce by about 2 per cent, or more than 1,600 jobs, in a cost-cutting move, the Wall Street Journal reported on Thursday.

The job cuts are expected to start on Friday, and a second phase will be completed by the end of the quarter, the report said, citing an employee memo.

The layoffs are not expected to impact employees in stores and distribution centers or those in its innovation team, according to the WSJ report.

The Air Jordan 1 shoe maker is using its resources to increase investment in categories like running, women's apparel and the Jordan brand, the report quoted CEO John Donahoe as saying in the memo.

Nike did not immediately respond to a Reuters request for comment.

The report comes after the company in December cut its annual revenue forecast and laid out a $2 billion cost-saving plan, blaming cautious consumer spending.

Nike had said it would incur about $400 million to $450 million in employee severance costs in the current quarter.

More from Business

Coming Up on Dubai Eye

  • Entertainment Extra

    1:00pm - 2:00pm

  • Afternoons with Helen Farmer

    2:00pm - 5:00pm

    Every weekday afternoon, Helen Farmer will help you to navigate the highs and lows of life in the UAE. Stay up to date with what’s happening and where to go.


On Dubai Eye

  • Flying Taxis

    It sounds like an episode of The Jetsons, but the sight of flying taxis whizzing around our cities could be much closer than you think.

  • Tough penalties for deliberate tax evasion

    The UAE has said that tougher penalties will come into force from 1st August for not keeping proper corporate tax records.