Earlier this week, Nike announced layoffs that will affect over a thousand employees. The cuts will reduce Nike’s workforce by around two percent, and Nike stated the cuts will allow for the reorganization of company structures. Nike also stated that it will be adjusting its focus areas, and will concentrate on running, women’s, and Jordan products in the future. The layoffs will occur in two rounds, with the first round beginning this week, and the next round of layoffs will occur before the end of the fourth quarter. Nike has not specified which departments will be affected by the layoffs, but the company stated that the job cuts will not affect warehouse or retail workers. Market demand for discretionary goods has decreased recently due to changes in consumer behavior, and Nike is taking the change in demand into account when determining company strategy. The company will also increase the use of automation and technology and decrease management roles according to Nike’s announcement.
See "Nike will conduct two rounds of layoffs before the end of the fourth quarter, expected to cut hundreds of positions", Jessica Golden, Gabrielle Fonrouge, Sara Eisen, CNBC, February 16, 2024