The downsizing is continuing at Nike.
The sneaker giant told The Oregonian/OregonLive Thursday that its efforts to build a “flatter, nimbler company,” led to an unspecified number of recent layoffs.
These latest cuts follow larger layoffs the company announced last summer, which eliminated 700 Oregon jobs through January and many more across the company. Nike wouldn’t say how many people lost their jobs recently, or in what departments.
Nike confirmed the new job cuts the same day it announced quarterly revenue of $10.3 billion and profits of $1.4 billion in the quarter that ended February 28. The company said its rising profits resulted, in part, from “lower wage-related costs.” Sales and administrative expenses fell $242 million compared to the same period a year ago.
North American sales actually declined nearly 11% last quarter. But Nike blamed that on a shortage of shipping containers and congestion in U.S. ports, not any brand weakness.
“Nike’s strong results during a dynamic environment show the power of staying on the offense,” said John Donahoe, Nike’s CEO. “Fueled by compelling innovative product and global brand momentum, we continue to extend our leadership. Our strategy is working, and we are excited for what’s ahead.”
Nike did not disclose the latest job cuts in Thursday’s announcement.
Nike’s stock closed Thursday at $143.17 per share, down $1.65. In after-hours trading, it dipped to $137.52.
In its statement on the job cuts, Nike said: “This is a continuation of the work we started this past summer to simplify our organization. We are building a flatter, nimbler company and more quickly transforming Nike to define the marketplace of the future.”
The company seemed to indicate that more job cuts could be coming.
“We are focused on shifting resources and creating capacity to reinvest in our highest potential growth areas,” the company said. “This process and related timeframe will vary in certain markets based on local labor laws.”
The Link LonkMarch 19, 2021 at 08:15AM
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Nike lays off more workers but says shoe market remains strong - OregonLive
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