Nike Layoffs: US Sportwear Giant To Lay Off Employees, Announces USD 2 Billion Cost-Cutting Plan, Say Reports
Nike announced a $2 billion cost-cutting plan and said to adopt automation. The company will reportedly lay off employees due following the changes.
Mumbai, December 26: In 2023, many companies have laid off thousands of employees due to restructuring and adopting AI or automation. Tech is among the primary sectors AI automation affects for different business functions. Amid the tech layoffs this year, the US-based athletic footwear company Nike has announced a cost-cutting plan and potentially will lay off multiple employees amid the "trepid sales".
According to the report by Zeenews India, Nike fired 700 employees during the Covid-19 pandemic to cut costs during the global lockdown. As per the report, Nike plans to increase automation in some of its services. The report further mentioned that the American sportswear giant has revealed a $2 billion cost-cutting plan while reporting to The Guardian. Paytm Layoffs: Fintech Leader Likely To Reduce 10% Workforce Due to AI-Powered Automation Plans.
Nike To Lay Offs Employees Due to AI?
According to the report by ET Now, the global footwear company Nike plans to cut hundreds of jobs in December. The company will reportedly increase automation and save $2 billion in the next three years. Nike will use more automation and technology to commit to the cost-saving plan.
Nike's steps will reportedly result in $400 million to $450 million pre-structuring charges, likely to be organized in Q3 in 2024. The report mentioned that the steps taken by Nike will mostly be related to employee payoffs. According to the ET Now report, Nike President and CEO John Donahoe stated that the company sees an "outstanding opportunity to drive long-term profit". Layoffs 2023 in December: More Than 4.25 Lakh Tech Employees Lose Their Jobs This Year as Google, Paytm, BYJU’s and More Continue Layoffs During Holidays, Says Report.
According to the Zeenews India report, Nike's profit margin has improved, but sales continue to dip. The report mentioned that Nike's share prices dropped 10% and had a slowdown in the rise of sales. The report mentioned that in the tech sector, there were a total of 2,60,509 employees laid off in 2023 compared to 1,64,969 in 2022. The layoffs in companies continue to rise. Indian fintech major Paytm recently announced the adoption of AI for automation with potential layoffs in the future.
(The above story first appeared on LatestLY on Dec 26, 2023 02:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).