Apparel giant Nike has announced plans to cut over 1,600 jobs, representing roughly 2% of its global workforce, as part of a broader cost-cutting initiative. This news comes with concerns about the lack of demand for sportswear and sneakers, coupled with rising inflation and supply chain disruptions.
It was reported that Nike has a multi-year plan to save up to $2 billion. The jobs cut may be phase one of Nike’s plan. The company has struggled with higher inventory levels and slowing sales growth in recent quarters. Rising raw material costs and ongoing logistical challenges have further squeezed profits.
Time will tell whether Nike’s cost-cutting measures will be enough to weather the current economic storm. However, the job cuts serve as a stark reminder of the challenges facing the athletic apparel industry in 2024.
