US sportswear major Nike plans to slash 1600 employees

Nike plans to slash 1600 employees
Representational image. Photo Courtesy: Unsplash

US sportswear giant Nike is planning to lay off 1,600 people, which comprises two percent of its workforce, media reports said.

According to reports, the company is planning the move to cut costs.

Nike Chief Executive John Donahoe said the company is using its resources to increase investment in categories like running, women’s apparel and the Jordan brand, according to an employee memo reviewed by The Wall Street Journal.

According to reports, the layoffs are not expected to affect employees in stores and distribution centers or those in its innovation team.

The company reportedly had 83,700 employees as of May 31.

“This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” Donahoe said in the memo.

Nike is one of the world market leaders in the production of sportswear, footwear and accessories.

It was founded in 1964 and is headquartered in Beaverton, Oregon, the United States.