Posted 2/16/2024, 1:45:48 PM
Nike Announces 1,600 Layoffs As Part of $2 Billion Cost-Cutting Plan Amid Slowing Sales
- Nike laying off 1,600 workers, about 2% of its workforce, as part of a $2 billion restructuring plan over 3 years
- More layoffs likely coming in next few years as part of cost-cutting effort
- Investors seem unimpressed, with stock down 2.3% YTD, concerned about growth outlook especially in China
- Other consumer companies also reporting weak results in China recently like Burger King, Levi's
- Nike gets 15% of sales from China; if that market struggles, there will be ripple effects in US including more layoffs