Global sportswear brand Nike is preparing to give a big shock on Christmas and New Year. Nike is preparing to lay off hundreds of its employees in the next few days. The company has set a target of cutting expenses by $2 billion in the next three years, for which the company will focus on automation. Last week, Nike unveiled a $2 billion cost-saving plan by reducing its annual revenue estimates.
According to The Guardian, Nike said employee layoffs will cost 400 to 450 million dollars. However, the company has not disclosed how many people it will lay off. In May this year, Nike had 83,700 employees; in 2022, their number was 79,100. Along with increasing automation, Nike will make changes in its products, and the company will also launch new, fresh-style products to attract customers.
Nike CFO Matthew Friend said in a conference call that customers worldwide have become very cautious in today’s era. He said that newness and innovation motivate the consumer when the consumer is under pressure and promotion activity is high.
Nike has blamed Greater China, which includes Hong Kong, Taiwan and Macao, for the decline in online sales. Nike’s store sales have jumped by 16 per cent, while digital sales have declined by 22 per cent in the quarter ending November 30. After this decision, Nike saw a 12 per cent decline in the company’s stock. This decline has also been seen in the stores of other sportswear companies.
