Nike plans to lay off approximately 740 positions at its global headquarters in Oregon, according to a letter disclosed on Friday, reported by Reuters. This move by the leading sportswear manufacturer aims to control expenses following its cautionary note regarding a revenue decline expected in the first half of fiscal year 2024-25.


In a notification mandated by law to state authorities, Michele Adams, Vice President for People Solutions at Nike, specified that the start of the "second phase of impacts" is slated to occur by June 28 at the company's headquarters, as per the report. Following the after-hours trading, the company's shares experienced a slight increase. However, it's noteworthy that they have decreased by approximately 13 per cent over the course of this year.


In December, Nike unveiled a cost-saving initiative aiming to achieve $2 billion in savings over the subsequent three years. Subsequently, in February, the company disclosed its intention to reduce approximately 2 per cent of its overall workforce, equating to more than 1,600 positions.


"This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable," Nike's Chief Executive, John Donahoe, said in a memo at the time.


The sports giant employed approximately 83,700 people as of May 31, 2023.


Numerous firms in both the United States and Canada have recently announced fresh rounds of layoffs, a response to the series of reductions witnessed in 2023, all aimed at trimming expenses amidst an unpredictable demand landscape. 


In March this year, Nike indicated that its revenues for the first half of fiscal 2025 are expected to decline by a low-single-digit percentage as the company aims to reduce investment in specific product lines. Likewise, Nike's global peers, such as Adidas, Puma, and JD Sports, have purportedly issued warnings regarding diminished earnings for the present year. They attribute this to a decline in consumer expenditures on non-essential goods.


Also Read: Nike To Lay Off Over 1,600 Employees: Report