Nike plans to lay off 740 employees at its Oregon headquarters in the United States, according to a letter released by the company on Friday. The sportswear giant aims to reduce costs following an anticipated revenue decline in the first half of FY 2024-25.
Michele Adams, Nike's vice president for people solutions, mentioned that the "second phase of impacts" is scheduled to begin by June 28. This decision follows Nike's announcement of a cost-saving initiative to cut $2 billion over the next three years in December.
In February, the company disclosed its intention to eliminate approximately 2% of its workforce, equating to over 1,600 positions. As of May 31, 2023, Nike had approximately 83,700 employees.
Despite experiencing a nearly 13% drop in share value since the start of the year, Nike saw a slight increase in after-hours trading. After-hours trading refers to the buying and selling of securities outside the regular market hours of the exchange.
Nike is one of several companies in the United States and Canada that have recently announced layoffs to manage costs amidst uncertain demand.
In March, Nike indicated that its revenues in the first half of FY 2024-25 would decline by a low-single-digit percentage as the company looks to streamline certain product lines.