Nike, Inc. FROM It will reportedly cut about 740 jobs at its Oregon headquarters, aiming to reduce expenses following an expected revenue decline in the first half of fiscal 2025.
By June 28, the “second phase of impacts” will begin at Nike headquarters, Michele Adams, the company’s vice president of global people solutions, confirmed, told Reuters.
In December, Nike unveiled a cost-cutting plan targeting $2 billion over three years. By February it expected to cut more than 1,600 jobs, about 2% of its workforce.
As of May 31, 2023, Nike had approximately 83,700 employees.
Amid the job cuts announcement, the company is also on the verge of finalizing a substantial sponsorship deal with the basketball sensation Caitlin Clark ahead of his eagerly awaited professional debut in May.
Clark, recently selected with the first overall pick in the WNBA draft by the Indiana Fever after a standout college career, previously enjoyed sponsorship from Nike under a name, image and likeness agreement while attending the University of Iowa, Bloomberg reported.
Earlier this month, the company reportedly launched Olympic kits for the teams and athletes it sponsors.
The company has brought in athletes such as Kenyan marathon star Eliud Kipchoge and British sprinter Dina Asher-Smith, betting that top athletes can help it win over more everyday consumers.
According to Benzinga Pro, NKE stock has lost more than 24% over the past year. Investors can gain exposure to the stock via Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETFNBCC AND Listed funds Trust Roundhill S&P Global Luxury ETF LUXX.
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Price Action: NKE shares closed 1.26% lower at $94.53 on Friday. After hours, shares fell 0.24%.
Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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