{"id":11817,"date":"2024-02-17T12:04:16","date_gmt":"2024-02-17T12:04:16","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/nike-to-axe-1600-jobs-as-it-looks-to-trim-costs\/"},"modified":"2024-02-17T12:04:16","modified_gmt":"2024-02-17T12:04:16","slug":"nike-to-axe-1600-jobs-as-it-looks-to-trim-costs","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/nike-to-axe-1600-jobs-as-it-looks-to-trim-costs\/","title":{"rendered":"Nike to axe 1,600 jobs as it looks to trim costs"},"content":{"rendered":"

\"Retail<\/a><\/p>
\n<\/p>\n

\n
\n
\n
\"Nike
\u201cWe are taking decisive action to clear excess inventory,” finance chief Matthew Friend said.<\/figcaption><\/figure>\n<\/div>\n

Nike is set to cut nearly 2% of its total workforce in an effort to reduce costs after reporting \u201csofter\u201d sales in the second half of the year.<\/p>\n

The move will see the sports giant axe 1,600 roles and is part of\u00a0its wider plan of achieving \u00a31.6bn in cost savings over the next three years.<\/p>\n

Chief executive John Donahoe told employees in an internal email seen by The Business of Fashion: \u201dWe are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.<\/p>\n

The email noted that sports giant would redirect the resources towards investing in its most important categories and growth opportunities, such as running, women\u2019s and its Jordan brand.<\/p>\n\n

Subscribe to Retail Gazette for free<\/strong><\/h5>\n

Sign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\n\n

The redundancies will take place in two phases, with the first beginning this week and the next by the end of Nike\u2019s fourth quarter.<\/p>\n

The sportswear giant was forced to downgrade it sales expectations in December after sales in its second quarter edged up 1% to \u00a310.6bn. This was down 1% on a currency-neutral basis year on year.<\/p>\n

As such, the brand said it expects full-year sales growth of \u201capproximately 1%\u201d for its fiscal 2024 ending in May, below its previous outlook of mid-single-digit growth.<\/p>\n

Nike chief financial officer Matthew Friend said at the time: \u201cNike\u2019s second-quarter financial performance was a turning point in driving more profitable growth.<\/p>\n

\u201cAs we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.\u201d<\/p>\n

Click here to sign up to Retail Gazette\u2018s free daily email newsletter<\/strong><\/em><\/p>\n<\/p><\/div>\n