The sportswear giant has been grappling with one of its most significant slumps in years, marked by an overreliance on a few retro styles and a loss of the marketing prowess that once propelled it to the top of the sneaker industry. In 2023, Nike had approximately 83,700 employees globally. In response to its current challenges, Nike is implementing staff reductions, with CEO John Donahoe revealing in an internal email that the company will be laying off around 2 percent of its total workforce.
This decision is in line with Nike's December announcement outlining plans to cut up to $2 billion in costs over the next three years, with a specific focus on streamlining its organization among the targeted areas for savings. During the same period, Nike reported modest sales growth of just 1 percent in the quarter ending November 30 compared to the previous year, with a notable 5 percent decline in footwear sales in North America, Nike's largest market.
Addressing the current state of affairs, Donahoe acknowledged, "We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable," as expressed in the email. The message indicated that Nike would redirect resources towards investing in its most important categories and growth opportunities, including running, women’s, and its Jordan brand.
"This is how we will reignite our growth," it stated.
The layoffs will occur in two phases, with the first phase commencing this week, according to the email. The next phase will begin by the end of Nike’s fourth quarter.
This decision is in line with Nike's December announcement outlining plans to cut up to $2 billion in costs over the next three years, with a specific focus on streamlining its organization among the targeted areas for savings. During the same period, Nike reported modest sales growth of just 1 percent in the quarter ending November 30 compared to the previous year, with a notable 5 percent decline in footwear sales in North America, Nike's largest market.
Addressing the current state of affairs, Donahoe acknowledged, "We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable," as expressed in the email. The message indicated that Nike would redirect resources towards investing in its most important categories and growth opportunities, including running, women’s, and its Jordan brand.
"This is how we will reignite our growth," it stated.
The layoffs will occur in two phases, with the first phase commencing this week, according to the email. The next phase will begin by the end of Nike’s fourth quarter.