Nike Cuts 2% Of Global Workforce As Demand Weakens


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    Nike Cuts 2% Of Global Workforce As Demand Weakens

    Sneaker and athletic wear giant Nike (NKE) has announced plans to cut 2% of its global workforce, or more than 1,600 jobs, to lower expenses amid weak demand.

    Nike previously warned that retailers are lowering their orders for its sneakers and athletic apparel through wholesale channels, and that it continues to be impacted by the economic slowdown in China, its second largest sales market.

    Nike has also lost ground to upstart brands such as Decker Outdoors' (DECK) Hoka running shoes.

    Last December, Nike announced a $2 billion U.S. cost savings plan over the next three years as it reported disappointing earnings.

    The cost cuts include reducing management positions and about $450 million U.S. in employee severance costs.

    Nike had 83,700 employees last summer.

    Nike's stock has declined 15% over the past 12 months to trade at $106.05 U.S. per share.





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