US sporting goods giant Nike Inc. has announced that it plans to cut hundreds of jobs. The announcement came a day after the company cut its sales growth from five percent to just one percent. Nike, Inc.’s goal is to save $2 billion (1.8 billion euros) in costs.
Bloomberg first reported the company’s job cuts across all departments due to poor sales last year, after the Sports Article disclosed the move to the news magazine. Chief Financial Officer Matt Friend cited “weaker sales prospects in China and the rest of the world” as the reason for Nike’s expected layoffs, particularly the outlook in Europe, the Middle East and Africa. The company also reported slower growth in e-commerce. Commerce, a sector in which it had high hopes.
Following this announcement, Nike’s stock prices fell 10 percent, Bloomberg reports. The company’s situation reflects a broader trend in the sportswear industry, as other players such as JD Sports and Sports Direct also struggle with falling share prices.
This is the second significant round of layoffs for Nike. In 2020, during the corona pandemic, the company laid off 700 employees.
This translated article previously appeared on FashionUnited.nl