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Nike Hit With Massive Corporate Blow

via KPTV FOX 12 Oregon
This article was originally published at StateOfUnion.org. Publications approved for syndication have permission to republish this article, such as Microsoft News, Yahoo News, Newsbreak, UltimateNewswire and others. To learn more about syndication opportunities, visit About Us.

Nike announced plans to lay off around 1,600 employees, or about 2% of its global workforce, as part of a $2 billion cost-cutting strategy.

CEO John Donahoe said performance has not been the best and took responsibility.

Donahoe said, “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,” he continued.

ABC affiliate, WFAA reported, “In December, the company announced a $2 billion cost-cutting and restructuring strategy, signaling that there may be layoffs.”

Donahoe said, “Nike has a proud history where the most challenging moments bring out the best in us, individually and as a team.”

He added, “I know we will come together to respond once again, and I am confident in our future.”

The first layoffs occurred in late May, targeting the company’s Oregon headquarters.

Former Nike employees have co-created alumni groups to support those laid off, noting many former employees start their own companies.

Jana Panafilio, a 29-year Nike veteran, said, “We are here to support as a landing place for those people as they leave the brand to make their transition from Nike to next.”

“There is a disproportionate number of former Nike people that start their own companies. They are looking for talent, and they are looking for clients,” she continued.

“So, depending on what it is they are looking to do or what kind of help that they need, we have the resources to help them,” explained Panafilio.

The moves come as Nike’s stock dropped over 10% in December when budget cuts were announced.

Golfer Tiger Woods also ended his 27-year contract with Nike around this time to launch his own line.

While Nike said store and distribution center staff would not be impacted, the layoffs mark an attempt to restructure amid business challenges following increased “woke” political stances that have drawn controversy.

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