Nike announces more layoffs with more expected in future

Nike has announced latest layoffs in the company with more expected in future

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American multinational giant Nike is continuing its process of downsizing. The company while talking to a leading daily said that the efforts are being made to have a flatter and a nimbler family. Nike also said that it cannot specify to the number of layoffs that it has undertaken. The company had already announced big layoffs last summer which saw 700 job cuts from Oregon and now the latest cuts are unpredictable and is expected to see more across the company.

Nike has also refused to inform as to how many more jobs would be cut and from which department. The new job cuts by the company were confirmed on the same day when it had announced its quarterly revenue of $10.3 billion with profits of $1.4 billion that concluded in February 28, 2021. The company also explained that the increase in the profits was due to the lower-wage-related costs. The sales and administrative expenses had fallen to $242 million when it was compared to the same period a year earlier.

The sales in North America had declined by 11 percent in the previous quarter. But then Nike had blamed that situation on a shortage if the shipping containers and crowding in the ports of the United States. John Danohoe the CEO at Nike said that with the help of their competitive innovative products, they would be continuing to extend their leadership. Danohoe added that they are looking forward for what is lying ahead as their strategy is already working.

In the recent announcement, the company has not disclosed the number of job cuts. Nike while talking about the job cuts said that it is a continuation of the work that they had started during summer to simplify the organization. With this there are indications that there could be more job cuts in future as well. Nike added that they are focusing on shifting resources and creating capacity that will reinvest in their highest potential growth areas.

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