[[{“value”:”Nike announced it would slash about 1, 700 jobs, or roughly 2 % of its global workforce, in an effort to save as much as$ 2 billion in costs.
The athletic apparel behemoth employs about 83,700 people worldwide as of May 31, 2023.
As interest in sport, health, and wellness has not been higher, Nike said in a statement obtained by Bloomberg,” The actions we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities.”
In order to reduce costs and build capacity to increase profitability and innovation, Nike is eliminating almost 1,700 jobs. http ://t.co/8ed1saaix picture VAS7vUFnaj on twitter.com
MarketWatch ( @MarketWatch ) February 17, 2024
According to Bloomberg:
The company announced in December that it was looking to save up to$ 2 billion in costs, including reducing its workforce and streamlining its product line as growing consumer reluctance affects sales. The job cuts come after that.
That caused a decline in Nike’s shares, which have struggled to recover and are currently down about 6 %, including Friday.
Revenue is likely to remain weak due to” spotty consumer demand, lulls in product innovation, and modest competitive incursions,” according to Oppenheimer analysts led by Brian Nagel, who downgraded their assessment of Nike’s shares on Friday.
The analysts praised the cost-cutting initiative but added,” We think benefits will take time to materialize, especially in areas like product development and innovation.”
Simply put, Nike fires 1,700 workers at https ://t.co/QtrxGYpBdj.
— SALLY ( @Sally718068071 ) February 18, 2024
Nike will fire 1,700 workers.
To “right-size” the business and “get after our biggest growth opportunities,” the sportswear behemoth is releasing 2 % of its workforce. Co-YwRtXhdQHt
VOZ ( @Voz_US) February 19, 2024
According to CNN:
Customers are altering their behavior by substituting necessities and experiences like concerts and travel for unilateral purchases of goods like pricey sneakers and athletic wear.
Nike is even up against fierce competition from emerging companies like Hoka and On Cloud.
Nike finance chief Matt Friend stated that the company’s more pessimistic outlook “reflected” “indications of more careful consumer behavior around the world” and even “irrational macro headwinds in China and in Europe” when presenting its most recent financial results in December.
China, the second-largest economy in the world, is dealing with a number of serious issues, including weaker exports, declining real estate prices, and depressed consumers.
However, formal data confirmed on Wednesday that Europe’s economy was flatlining and that it avoided a recession by the thinnest of margins in the final three months of 2023. And for the first time since the start of the Covid- 19 pandemic, Germany, the region’s largest economy, saw a decline next year.”}]] [[{“value”:”
Nike announced that it would cut 1,700 jobs in order to save up to $2 billion. This is equivalent to 2% of the global workforce.
The athletic apparel giant will employ approximately 83,700 employees worldwide by May 31, 2023.
Nike, in a Bloomberg-obtained statement, said: “The actions we’re taking will allow us to right-size the organization in order to take advantage of our biggest growth opportunities. Interest in sport and health has never been higher.”
Nike has cut nearly 1,700 jobs as part of a plan to reduce costs and increase profitability. https://t.co/8ed1saaaix pic.twitter.com/vAS7vUFnaj
MarketWatch (@MarketWatch), February 17, 2024
Bloomberg reports
The company announced in December that it was looking to save up to $2 billion, including by reducing its workforce. It also simplified its product line as consumer caution increased.
This led to a decline in Nike’s share price, which has struggled to recover. Nike’s shares are down about 6 percent this year, not including Friday’s drop.
Oppenheimer analysts, led by Brian Nagel, downgraded their ratings on Nike’s stocks Friday, stating that revenue is likely to be sluggish because of “spotty demand from consumers, lulls with product innovation, and modest competition incursions.”
Analysts praised the cost-cutting efforts, but noted that “we believe benefits will take time to materialize in areas such product development and innovation.”
Just Cut It: Nike Lays Off 1,700 Employees https://t.co/QtrxGYpBdj
SALLY (@Sally718068071), February 18, 2024
Nike to lay off 1,700 Employees
The sportswear giant will release 2% of its staff to “right-size the company” to “go after our biggest growth prospects”. “https://t.co/YwRtXhdQHt
VOZ (@Voz_US), February 19, 2024
CNN:
Customers are changing their behaviour, and they are putting off discretionary purchases like expensive sneakers and athletic clothing in favor of basic necessities and experiences such concerts and travel.
Nike faces stiff competition from new brands such as Hoka and On Cloud.
Matt Friend, Nike’s finance chief, said that the company’s gloomier outlook reflected the “indications” of more cautious consumer behaviour around the globe. He also mentioned the “increased macro-headwinds in China and Europe.”
China, the second largest economy in the world, faces many challenges. From a downbeat consumer to a real-estate slump and weaker imports, China is facing a lot of problems.
Official data confirmed that Europe avoided a possible recession in the last quarter of 2023 by the smallest of margins, despite its economy stagnating, according to official data released on Wednesday. Germany, the largest economy in the region, contracted last year for the very first time since the Covid-19 pandemic began.
“}]]
