Nike is set to cut nearly 2% of its total workforce in an effort to reduce costs after reporting “softer” sales in the second half of the year.
The move will see the sports giant axe 1,600 roles and is part of its wider plan of achieving £1.6bn in cost savings over the next three years.
Chief executive John Donahoe told employees in an internal email seen by The Business of Fashion: ”We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.
The email noted that sports giant would redirect the resources towards investing in its most important categories and growth opportunities, such as running, women’s and its Jordan brand.
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The redundancies will take place in two phases, with the first beginning this week and the next by the end of Nike’s fourth quarter.
The sportswear giant was forced to downgrade it sales expectations in December after sales in its second quarter edged up 1% to £10.6bn. This was down 1% on a currency-neutral basis year on year.
As such, the brand said it expects full-year sales growth of “approximately 1%” for its fiscal 2024 ending in May, below its previous outlook of mid-single-digit growth.
Nike chief financial officer Matthew Friend said at the time: “Nike’s second-quarter financial performance was a turning point in driving more profitable growth.
“As we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.”
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