Additional Coverage:
Nike is gearing up for significant changes at its Oregon headquarters, with plans to cut 740 jobs by June 28, marking a second wave of layoffs. The move follows a memo from CEO John Donahoe, revealing an intent to reduce the company’s global workforce by 2% as part of a broader strategy to streamline operations and shed $2 billion in costs over the next three years. This workforce reduction comes as Nike anticipates a downturn in revenue for the first half of its 2025 fiscal year, prompting a strategic reassessment of its business model and operational expenses.
Despite the looming job cuts and forecasted revenue dip, Nike’s stock has shown resilience, climbing nearly 2% over the week. However, this uptick does little to offset the broader trend of a more than 11% decline since the start of the year, with the stock down over 23% in the last 12 months. The company’s financial performance and strategic decisions are closely watched by investors and market analysts, given its standing as a global leader in sports apparel and footwear.
In other Nike-related news, the brand has found itself at the center of controversy over the new track and field uniforms for the 2024 Paris Olympics, which have drawn criticism for being too revealing. Despite this, Nike continues to make waves in athlete sponsorships and endorsements.
Caitlin Clark, the top pick in the recent WNBA draft, is reportedly on the verge of signing a lucrative deal with Nike, which includes not only an eight-figure contract but also her own signature shoe. This move underscores Nike’s ongoing commitment to supporting and elevating athletes, even as it navigates operational and financial challenges.