New Delhi, April 21: Nike, the global sportswear brand, has announced plans to lay off 740 employees from its Oregon headquarters. Nike layoffs will result in the departure of 740 employees from its Oregon headquarters by June 28, which also highlights the challenging environment even leading brands are facing today. It is expected that this decision might be part of the company's overall cost-saving strategy.

As per a report of USA Today, Nike plans to lay off 740 employees at its Oregon headquarters before the end of June. These job cuts could continue with downsizing efforts by Nike due to the drop in sales revenue. Google Layoffs 2024: To Slash Costs, Tech Giant Reportedly Lays Off ‘Unspecified’ Number of Employees in Finance and Real Estate Teams.

The company’s share has fallen by 13 per cent since the start of this year. It could be possible that the company had planned for about two billion dollars in savings over the next three years, which might have resulted into this unfortunate downsizing of its employees. Already this year in February, the company had reduced its employees cutting more than 1,600 positions, which constituted approximately two percent of its total manpower, as per a report of Zee News.

Nike is looking for ways to operate more efficiently and unfortunately, this has meant making the difficult decision to reduce its workforce. The upcoming layoffs signify a second phase of job cuts. The decision to proceed with another round of layoffs reflects the company's ongoing assessment of its business structure and the need to align its workforce with its financial goals. Layoffs 2024: From Toshiba to Kohler and ConnectWise, Check Companies That Laid Off Hundreds of Employees To Cut Costs, Improve Operations and Restructure Business.

Nike is aiming to reduce costs in anticipation of a slight decrease in revenue in the initial half of its 2025 fiscal year, starting on June 1. Matt Friend, the CFO of Nike, mentioned during the earnings call on March 21, 2024, that the company is currently guiding its product portfolio through a phase of transformation.

(The above story first appeared on LatestLY on Apr 21, 2024 12:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).