Nike Layoff Update: Nike has blamed Greater China, which includes Hong Kong, Taiwan and Macau, for the decline in online sales.
Nike Layoff: Global sportswear brand Nike is preparing to give a big shock on the occasion of Christmas and New Year. Nike is preparing to lay off hundreds of its employees in the next few days. The company has set a target of cutting expenses by $2 billion in the next three years, for which the company will focus on automation. Last week, Nike unveiled a $2 billion cost-saving plan by reducing its annual revenue estimates.
According to The Guardian, Nike said that employee layoffs will cost 400 to 450 million dollars. However, the company has not disclosed how many people it is going to lay off. In the month of May this year, Nike had a total of 83,700 employees while in 2022 their number was 79,100. Along with increasing automation, Nike is going to make changes in the product and the company will also launch new fresh style products to attract customers.
Nike CFO Matt Friend said in a conference call that in today’s era, customers around the world have become very cautious. He said, we know in an environment like this, when the consumer is under pressure and promotion activity is high, it is the newness and innovation that motivates the consumer.
Nike has blamed Greater China, which includes Hong Kong, Taiwan and Macau, for the decline in online sales. Nike’s store sales have jumped by 16 percent while digital sales have declined by 22 percent in the quarter ending November 30. After this decision of Nike, there was a decline of 12 percent in the company’s stock. The effect of this decline has also been seen on the stocks of other sportswear companies.
