Nike is Likely Cutting Jobs, Reports $790 Million Net Loss

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Nike recently reported that it suffered a $790 million net loss in the previous quarter as a result of the pandemic. While certain parts of the world are starting to reopen, Nike is set to make some changes within its workforce.

In an email obtained by Complex, Nike CEO John Donahue stated that the Swoosh will be “forced to make some difficult choices” that will “likely result in a net reduction of jobs,” reports Brendan Dunne.

The same email also adds that the decision is not in relation to COVID-19 nor the Q4 reports but rather is meant to increased responsiveness within the brand and has nothing to do with “cost reasons.”

Donahue mentions that workers at Nike’s retail stores, distribution centers, and manufacturing facilities are not expected to be cut. However, Donahue writes that the company does  “not yet know how many jobs will be reduced, nor who will be specifically impacted.”

Nike issued Nice Kicks the following statement regarding the situation after we initially published the article:

Consumer Direct Acceleration is the next digitally empowered phase of our strategy. We are building a flatter, nimbler company and transforming Nike faster to define the marketplace of the future. We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs.

 Reductions are not being done for cost savings. Any savings will be reinvested into our priorities. 

We are committed to showing compassion and respect for our transitioning employees through thoughtful and robust severance practices, consistent with our company values, our legal obligations, the competitive marketplace and individual employee situations.

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