Nike to axe over 1,500 jobs amid restructuring

Sportswear giant Nike is set to axe 2% of its current workforce, over 1,500 jobs, as part of a broader restructuring plan to cut costs. 

Nike plans to use its capital to invest in its growth areas, such as running, women’s and the Jordan brand.

"This is how we will reignite our growth," CEO John Donahoe said in a memo obtained by CNBC.

"We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable", he added.

Despite commencing cuts, those in the EMEA region are yet to begin due to local labour laws. Although it’s not clear which departments will experience layoffs, the company said they will not affect retail or warehouse workers.

In December, Nike reported that revenues for the second quarter of fiscal 2024 increased by 1% to £10.5 billion ($13.4 billion) compared to the prior year and decreased by 1% on a currency-neutral basis.

At the same time, the company revealed plans to cut £1.5 billion ($2 billion) in cumulative cost savings over the next three years. As part of this commitment, Nike is taking steps to streamline the organisation, which will largely take place in Q3 2024.

Similarly, John Lewis is set to further slash its workforce over the next five years. It said the move will provide the business with more funds to put towards supporting its budgets and could be put towards its next pay review.