As we previously reported, the athletic footwear and apparel corporation announced its $2 billion cost-cutting strategy as part of a broader restructuring.
Nike Inc. began staff layoffs, and the plan is for over the next three years, which included tightening the supply of some products and reducing management layers.
The cost cuts will include approximately $400 million to $450 million in employee severance costs in the third quarter. Nike had about 83,700 employees as of May 31, 2023.
According to GlobalData managing director Neil Saunders, Nike is making these changes to stay ahead of any potential decrease in demand for their products.
Nike plans to invest more in areas like running, which would require some reductions elsewhere to balance out the costs. The SB department might be at risk, prompting a consideration of salary adjustments within the Nike SB skate team.