Nike to cut 2% of total workforce as part of cost-saving measures

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Global sportswear giant Nike will cut nearly 2% of its total workforce as it looks to reduce costs after predicting slowing demand and “softer” sales in the second half of the year, The Wall Street Journal has reported.

The move is likely to affect more than 1,600 jobs and is part of its wider plan of achieving $2bn (£1.6bn) in cost savings over the next three years, as outlined in Nike’s most recent results.

This comes after global sportswear giants including Adidas, JD Sports and Puma also warned of weaker sales as consumers cut back on spending.

Nike posted revenue of $13.4bn (£10.6bn) for its second quarter to November 30, 2023, up 1% on a reported basis and down 1% on a currency-neutral basis year on year.

At the time, the company said it had highlighted areas of “potential savings” including simplifying its product assortment, increasing automation and the use of technology, streamlining the organisation and leveraging its scale to boost efficiency.

Chief financial officer Matthew Friend said: “Nike’s second-quarter financial performance was a turning point in driving more profitable growth.

“As we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.”