Nike, Inc. NKE is reportedly set to cut around 740 jobs at its Oregon headquarters, aiming to trim expenses following a projected revenue decline in the first half of fiscal 2025.
By June 28, the “second phase of impacts” will commence at Nike’s headquarters, confirmed Michele Adams, the company’s vice president of global people solutions, Reuters reported.
In December, Nike unveiled a cost savings plan targeting $2 billion over three years. By February, it planned to cut over 1,600 jobs, roughly 2% of its workforce.
As of May 31, 2023, Nike had approximately 83,700 employees.
Amid the announcement of the job cuts, the company is also on the brink of finalizing a substantial endorsement deal with basketball sensation Caitlin Clark ahead of her anticipated professional debut in May.
Clark, recently selected as the first overall pick in the WNBA draft by the Indiana Fever following a remarkable collegiate career, had previously enjoyed sponsorship from Nike under a name, image, and likeness arrangement 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 roped in athletes such as Kenyan marathon star Eliud Kipchoge and British sprinter Dina Asher-Smith, betting that top athletes can help it win more everyday consumers.
According to Benzinga Pro, NKE stock has lost over 24% in 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 lower by 1.26% to $94.53 on Friday. Shares fell 0.24% after hours.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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