The swoosh is ending the week with a slash.
Nike is expected to lay off roughly 2% of its workforce, according to Bloomberg. In December, the company said it was looking to reduce its costs by $2 billion over the next three years through staff cuts and a simpler product mix in an attempt to avoid inventory backlog.
The sportswear company employs roughly 84,000 people, meaning Friday’s layoffs, which will go into next week, will impact about 1,700 employees. Nike is expected to have a second round of staff cuts, which will be done by the end of the fourth quarter.
Nike’s struggles aren’t unique to its industry, as multiple sportswear companies have struggled to regain the traction they had in the pandemic when consumers were drawn to safer activities such as golf, running, and home fitness. The trend has been seen with other companies in the space like Peloton and Foot Locker.
