Nike cuts costs by laying off 2% of its total workforce

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Following announcing its cost-savings plan in December, Nike is laying off about 2% of its total workforce, the company confirmed. That amounts to more than 1,600 people, based on the 83,700 employees Nike reported in its latest annual report.

“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement. “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”

In December, Nike slashed its revenue forecast and announced cost cuts amid growing concerns that consumers around the world are slowing their spending. The company said it was looking for up to $2bn in savings over the next three years.

When presenting the company’s latest financial results in December, Nike finance chief Matt Friend said its gloomier outlook reflected “indications of more cautious consumer behavior around the world” and also mentioned “increased macro headwinds in China and in Europe.”

Customers are changing their behavior, passing up discretionary purchases of goods — like expensive sneakers and athletic wear — for basics and experiences such as concerts and travel.