About 1,600 Nike Employees To Be Laid Off

About 1,600 employees are being laid off at Nike, according to President and CEO John Donahoe. Donahoe revealed the development in a company-wide email sent on Thursday, per WFAA.

Nike to lay off 2% of employees, cutting more than 1,500 jobs during broad restructuring https://t.co/GIBXO89WTG

— CNBC (@CNBC) February 16, 2024

“This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” he said.

“Nike has a proud history where the most challenging moments bring out the best in us, individually and as a team. I know we will come together to respond once again, and I am confident in our future,” he added.

Donahue also revealed that the layoffs will not affect store managers, store employees or distribution center employees.

The first round of layoffs started on Friday and will continue through the week. The next rounds will go through the end of May.

The whole round of firings would see two percent of Nike employees get laid off, as the company has 83,000 employees worldwide, with 15,500 in the Portland, Oregon, and Southwest Washington State area. As speculated by WFAA, the company’s layoffs would mostly target its Oregon headquarters.

The decision to fire some of its workers comes after the ultra sportswear company’s stock took a nosedive by more than 10% in December upon news that the company was planning to cut its budget by $2 billion.

It also follows the company’s involvement in controversy, especially after it signed transgender influencer Dylan Mulvaney to model its sports bras and leggings.