- Nike is laying off some of its staff, the company confirmed to Business Insider.
- CEO John Donahoe announced the news Thursday in a company-wide email, which Complex saw.
- The sportswear giant also reported a net loss of $ 790 million for the fourth quarter on Thursday, in part as a result of the pandemic-related stores closing.
- “We are shifting resources and building capacity to reinvest in our areas of greatest potential, and we anticipate that our realignment will likely result in a net loss of jobs,” Nike said in a statement.
- If you are a Nike employee with a story to share, email [email protected].
- Visit the Business Insider home page for more stories.
Nike is laying off some of its staff, the company confirmed to Business Insider.
CEO John Donahoe announced the layoffs, which are expected to occur in phases, beginning in July, in a company-wide email on Thursday. The email, which Complex saw, did not specify how many employees and which departments would be affected, but mentioned that workers at Nike’s retail stores, distribution centers and manufacturing facilities were not expected to be among the layoffs.
Donahoe said the layoffs were not related to the pandemic or to costs, but described them as an effort to restructure the company’s “overloaded matrix,” according to Complex.
Nike told Business Insider that any money saved would be “reinvested” in the company.
“Direct consumer acceleration is the next digitally enhanced phase of our strategy,” Nike said in a statement. “We are building a flatter and more agile company and transforming Nike faster to define the market of the future. We are shifting resources and building capacity to reinvest in our areas of greatest potential, and we anticipate that our realignment will likely result in a net loss of jobs. “
The announcement came shortly after Nike reported a net loss of $ 790 million in the fourth quarter, in part as a result of the impact of the COVID-19 pandemic on North American stores.
“These decisions are exceptionally difficult because they impact Nike friends and colleagues,” Donahoe wrote in the email, according to Complex. “You have my personal commitment that we will put people at the center throughout this process. We will support all those affected by this transition.”
In its statement to Business Insider, Nike said: “We are committed to showing compassion and respect for our employees in transition through thoughtful and sound dismissal practices consistent with our company’s values, our legal obligations, the competitive marketplace and the individual employee situations. “
If you are a Nike employee with a story to share, please email [email protected] or message this reporter via Signal encrypted messaging app at +1 (646) 376-6018 using a phone it doesn’t work.
