The American company Nike announced a second wave of mass layoffs this year.
American sportswear and footwear manufacturer Nike announced on April 23 the reduction of approximately 1,400 jobs worldwide, according to CNBC. The majority of the layoffs will affect the company's technology department, and the personnel changes will impact employees in North America, Asia, and Europe.
In a memo from Chief Operating Officer Venkatesh Alagirisamy, it is noted that these measures are part of a strategy to restore the business. Management plans to reorganize the technology team, modernize production, and integrate supply chains. According to company representatives, the cuts will affect less than 2% of Nike's total workforce worldwide, but they are necessary to accelerate growth and adapt to the current pace of sports development. "This is not a new direction, but the next stage of work that has already begun," emphasized Alagirisamy.
CEO Elliott Hill is trying to pull Nike out of crisis after several years of declining sales. In January of this year, the company already laid off 775 employees at distribution centers in the U.S. due to the implementation of automation, and last summer, it reduced less than 1% of its corporate staff. In its report for the third financial quarter, the retailer warned of further revenue declines through the end of the year, primarily due to an expected 20% drop in sales in China.
*The supply chain is a system of organizations, people, technologies, and resources involved in the process of creating and delivering a product from the raw material supplier to the end consumer. Effective management of this system allows companies to reduce costs and speed up the delivery of goods to market.
