Sportswear giant Nike is cutting 1 jobs as it cuts costs. This will affect approximately 600 percent. employees, writes The Wall Street Journal. The layoffs will begin Friday and be completed by the end of the quarter, according to the statement, which cited a letter to employees.
"It's a painful reality and one I don't take lightly," wrote Nike CEO Jon Donahoe. "At the moment, our results are not the best, and I and my team are responsible for that." Staff reduction will not affect employees of stores, distribution centers and innovation teams.
The company in December cut its annual sales forecast to $2 billion. dollar cost reduction plan. The reason for the savings is given to restrained consumer spending.
Nike has announced that it will spend about 400-450 million dollars on severance payments this quarter. dollars.
The company has not yet responded to a request for comment on the layoffs.
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