Nike is making moves to cut its costs by laying off 750 employees, as the company witnesses a projected decline in revenue for the first half of FY24-25
Nike, the US-based footwear giant, has announced that the company will be laying off more than 700 employees in an effort to cut down the costs being incurred. As per a letter released last week, the decision of job cuts comes after the company witnessed a prospective decline in revenue for the first half of FY24-FY25.
Michele Adams, the Vice President for people solutions, said in the letter that the 'second phase of impacts' will commence from late June, this year. In December, the sportswear company revealed its plan to cut down its costs by $2 billion within the next three years.
Earlier this year the company had announced that it would be reducing its workforce by about 2 per cent, which translates to more than 1,600 positions. At the end of May 2023, Nike, reportedly, had around 83,700 employees.
The shares of the company witnessed a minor increase during the after-trading hours session following the news. However, on a year-to-date basis, Nike has lost more than 10 per cent of its share value on NYSE.
Just last month, in March, the company shared that its revenues for the first half of FY 2024-25 would see a decrease by a single-digit percentage. This adjustment is owing to its plans to streamline certain product lines.
Nike is among the many US companies that have been announcing layoffs lately. Besides media and giant tech players, many firms in the e-commerce segment and the consumer space have also followed a similar trail.