Sportswear giant Nike will lay off around 2% of all its employees, equivalent to nearly 1,700 jobs worldwide, after noting a decline in customer interest in apparel items in December. Sports.
“The steps we are taking will allow us to right-size our organization to capitalize on our greatest growth opportunities. Although these changes will impact approximately 2% of our total workforce, we are grateful for the contributions of all Nike teammates,” a Nike (NKE) spokesperson said in a statement on Friday, according to CNN.
By cutting these jobs, Nike hopes to gain up to $2 billion over three years by reducing labor costs.
The announcement came just months after the company's chief financial officer, Matt Friend, painted a more bleak picture of sales, noting a shift in consumer behavior that was becoming more “cautious” in their purchases.
According to him, customers currently tend to prioritize basic products and experiences such as concerts and travel over discreet purchases such as expensive shoes or sportswear.
The finance chief also reportedly attributed the slowdown to strong competition from emerging brands such as Hoka and On Cloud.