Nike Takes Action in Billion-Dollar Cost-Cutting Program, Plans to Cut Hundreds of Jobs. This Equals Two Percent of the Global Workforce of the Sporting Goods Giant. Confirmation of These Layoffs Occurred on Thursday (Local Time) to the Financial Service Bloomberg.

At the end of the fiscal year in May 2023, the Nike corporation employed about 83,700 employees. The cutbacks are not expected to affect the employees in Nike stores and distribution centers, as reported in an email from Nike CEO John Donahoe to the staff, which was previously published by the newspaper "Willamette Week".

These developments follow the announcement in December to save around two billion dollars in the coming years. Nike is in fierce competition with prestigious brands like adidas or Puma. In addition, the USA is seeing a decline in spending on sports equipment as the hype from the Corona pandemic slowly wanes. Pre-market, Nike's stock temporarily loses 0.77 percent on the New York Stock Exchange and is at $105.23.

Amidst this challenging situation for the sports industry, Nike continues its cost-cutting measures in response to customers' changing consumption habits. The company strives to maintain a strong long-term position in the market and assert itself despite the competition. This move is part of Nike's strategy to focus on its core business and utilize resources effectively.

The layoffs are expected to affect various areas of the company, but the exact details are not yet known. However, Nike states that the cuts will not affect employees in Nike stores and distribution centers in order to continue to ensure customer service and distribution of goods.

Nike's Focus Continues to Be on Strengthening the Brand and Ongoing Innovation. CEO John Donahoe comments on the situation: "As a global company with a strong brand and the best athletes, teams, and fans in the world, we are confident that we will capitalize on our growth opportunities and face our challenges."

Despite the necessary cost-cutting, Nike will continue to take actions to strengthen the company and make it future-proof. The employees will continue to be comprehensively supported, and the brand will maintain its focus on innovation and expansion to remain successful in the future.