The announcement follows senior leadership changes made last week. Nike intends to streamline its organization to transform the company faster.
Over 500 employees will be leaving Nike. The sportswear giant intends to lay off at least half a thousand employees at its headquarters in Beaverton, Oregon. The job cuts, which were first reported by the Portland Business Journal, will go into effect Oct., 1.
The lay offs will affect members of the management team and their executive assistants. Nike also intends to shut down the child-care centers, where 192 people work.
The company’s plan is to offer its employees child-care benefits but outside Nike headquarters and, for the first time, also include retail, manufacturing and logistics staff, as reported by WWD.
Nike plans to close its child-care centers, where 192 people work
The announcement follows senior leadership changes made last week. Nike intends to streamline its organization to transform the company faster. Although the group didn’t specify how many workers will be affected, it said it expects pre-tax one-time employee termination costs of approximately $200 million to $250 million.
“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” said John Donahoe, president and CEO of Nike. “Now is the right time to build on Nike’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth,” he added.
This week, the company has also announced that it will not carry out its plan to open an Air Manufacturing Innovation center in Godoyear, Arizona, where it planned to invest $184 million. The company bought the factory in 2019 for $70 million.
Nike ended its last fiscal year (ended May 31) with a 4% fall in sales. Only in the fourth quarter, the company lost $790 million after being forced to shut down its stores due to the pandemic.