'Nike Says Layoffs Will Impact 740 At Oregon Headquarters' - Oregon Live
Portfolio Pulse from Benzinga Newsdesk
Nike announced it will lay off 740 workers at its Oregon headquarters as part of a second wave of mass layoffs, following a previous announcement by CEO John Donahoe of a 2% workforce reduction. The layoffs, which are part of a broader restructuring effort aimed at cutting $2 billion in costs over three years, do not affect Nike's store, distribution center, or U.S. manufacturing facility employees. This move comes amid a sales slump and market share loss to competitors, with Nike projecting only a 1% sales increase for the fiscal year ending May 31 and expecting sales to decline in the following six months before a projected acceleration due to new product launches.
April 19, 2024 | 6:47 pm
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Nike's announcement of laying off 740 workers at its Oregon headquarters reflects a broader restructuring effort to cut costs and streamline operations amid a sales slump and market share loss. This move, part of a plan to reduce expenses by $2 billion over three years, comes as Nike faces stiff competition and projects only a modest sales increase for the current fiscal year, with expectations of a sales decline in the following six months.
The layoffs at Nike's headquarters signal a significant restructuring effort aimed at addressing the company's current financial challenges, including a sales slump and loss of market share to competitors. This news could negatively impact investor sentiment in the short term, as layoffs often raise concerns about a company's financial health and future growth prospects. Additionally, the projected sales decline in the coming six months further underscores the challenges Nike faces, potentially leading to a negative short-term impact on its stock price.
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