Nike “Permanently” Laying Off 740 Employees At World Headquarters

US athletic footwear and apparel company Nike announced late in the cash session on Friday that it is undergoing a restructuring effort to trim costs at its World Headquarters (WHQ) located in Beaverton, Oregon. 

Michele Adams, VP of People Solutions at Nike, might be the most hated person at the company this afternoon. In a letter to staff, she wrote that “approximately 740 employees at WHQ” will be “permanently” laid off by late June. 

“As a result of a second phase of impacts, which will take effect by June 28, 2024, approximately 740 employees at WHQ will have been impacted by this and the recent prior permanent reduction of the workforce,” Adams said. 

In December, Chief Executive Officer John Donahoe said the company would reduce its global headcount by 2% as management moves forward with a cost-savings program of as much as $2 billion over the next three years. 

Data from Bloomberg shows that Nike’s total headcount stood at around 83,700 as of the end of 2023. The company has been dramatically hiring over the last decade and a half – those efforts appear to have just stalled. 

Nike shares have stumbled into a correction as of late March. 

Yet another sign consumers are pulling back on clothing apparel and other sporting goods merchandise?