Nike Inc. announced layoffs for 740 employees at its world headquarters in Beaverton, Oregon.

The Nike layoffs are connected to a plan the retailer announced Dec. 21 in releasing results for its fiscal second quarter ended Nov. 30, 2023.

“The Company is identifying opportunities to deliver up to $2 billion in cumulative cost savings over the next three years,” Nike said in a press release at the time. “Areas of potential savings include simplifying our product assortment, increasing automation and use of technology, streamlining our organization, and leveraging our scale to drive greater efficiency.”

Nike ranks No. 8 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. It’s also the highest-ranking Apparel/Accessories retailer in the Top 1000.

In its fiscal third quarter ended Feb. 29, 2024, it reported that consolidated revenue grew to $12.43 billion from $12.39 billion in the year-ago period.

Who the Nike layoffs will affect and when

In February, Nike said it plans to cut about 2% of its total workforce, or more than 1,600 people. The 740 employees in the next wave of Nike layoffs are included in that 1,600 figure. Nike said in an April 19 statement that this second phase of layoffs will take effect by June 28.

Nike CEO John Donahoe communicated the move to employees via internal email.

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

The email also said that although consumer interest in sport, health, wellness and comfort “has never been stronger,” the industry is highly competitive. Donahoe then added that “end-to-end execution is critical to win” and that Nike “must edit, shift and divest less critical work to create greater focus and capacity for what matters most.”

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