As of: February 16, 2024, 7:02 p.m
By: Robert Wallenhauer
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As costs rise, consumers are increasingly looking at what they spend money on.
This doesn't go unnoticed by Nike either.
The Adidas competitor is cutting jobs.
Beaverton, USA - The fact that consumers are increasingly paying attention to their spending is now also noticeable at the US sporting goods giant Nike.
The group lowered its annual sales forecast in December last year and presented a two billion dollar savings program.
It has now been announced that hundreds of jobs will also be cut as a result.
Around two percent of the global workforce is set to leave, as the Adidas competitor confirmed to the US financial service
Bloomberg
on Thursday .
According to the latest information from the end of May 2023, the US group had around 83,700 employees.
Accordingly, the austerity measures would cost around 1,600 employees their jobs.
The job cuts are expected to begin on Friday and be completed in a second phase by the end of the quarter, the
Wall Street Journal (WSJ)
reports , citing a memo to employees.
Nike: The company is cutting around 1,600 jobs.
© Thomas Trutschel/Imago
Nike: High competition, little innovation and high inventories increase pressure
The reduction should not affect employees of Nike stores and distribution centers, the
Willamette Week
newspaper previously reported , citing an email from Nike boss John Donahoe to the workforce.
Nike is in fierce competition with brands like Adidas and Puma - and in the USA, among others, consumers are spending less on them again after a boom in sporting goods during the corona pandemic.
Retail sales in America fell in January compared to the previous month, writes the
WSJ
.
“This is a painful reality that I do not take lightly.
We are not performing at our best at this time, and I ultimately blame myself and my leadership team for that,” Donahoe said in the email, according to the
WSJ
.
The company has recently struggled with increasing customer concerns about Nike's ability to deliver innovative products.
In addition, excessive inventories are causing problems for the fashion giant, writes the American business newspaper.
High inventory levels led to deep discounting of clothing and footwear, hurting profits.
(with material from dpa and Reuters)