Nike lays off hundreds of employees at Oregon headquarters

Nike layoffs: Nike is set to lay off approximately 740 employees at its world headquarters in Oregon, as revealed in a letter issued on Friday. The move comes as the leading sportswear maker aims to streamline costs following its cautionary announcement of an anticipated revenue decline in the first half of fiscal 2025.

Michele Adams, Nike's vice president for people solutions, outlined the commencement of the "second phase of impacts" by June 28 at the company's headquarters, as per a legally mandated notice sent to state authorities.

While the company's shares experienced marginal gains in after-hours trading, they have witnessed a decline of nearly 13 per cent since the beginning of the year.

In December, Nike had unveiled a cost-saving initiative targeting $2 billion in savings over the next three years. Subsequently, in February, it announced plans to reduce its workforce by about 2 per cent, equating to over 1,600 roles. As of May 31, 2023, Nike employed approximately 83,700 individuals.

This move by Nike aligns with a broader trend observed across various companies in the United States and Canada, as they implement new rounds of layoffs to mitigate costs amidst an uncertain demand landscape.

In March, Nike had hinted at an expected low-single-digit percentage decrease in revenues during the first half of fiscal 2025, signaling its intention to scale back on certain franchises in order to navigate market challenges.

(With Reuters inputs.)