Sportswear big Nike plans to scale back its workforce by about 2 per cent, or greater than 1,600 jobs, in a cost-cutting transfer, the Wall Street Journal reported on Thursday.
The job cuts are anticipated to begin on Friday, and a second section will probably be accomplished by the tip of the quarter, the report stated, citing an worker memo.
The layoffs will not be anticipated to impression staff in shops and distribution facilities or these in its innovation workforce, in keeping with the WSJ report.
The Air Jordan 1 shoe maker is utilizing its assets to extend funding in classes like working, girls’s attire and the Jordan model, the report quoted CEO John Donahoe as saying within the memo.
Nike didn’t instantly reply to a Reuters request for remark.
The report comes after the corporate in December reduce its annual income forecast and laid out a $2 billion cost-saving plan, blaming cautious shopper spending.
Nike had stated it will incur about $400 million to $450 million in worker severance prices within the present quarter.
