New Delhi: Ahead of the the new, one of the most popular athleisure brand Nike has announced to cut hundreds of jobs. Nike has planned to increase the automation of certain services in order to $2 billion in costs, reported the Guardian. Due to the poor sales over the last year Nike has been cutting costs across the different departments.
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Nike said that they have been taking steps to streamline the organisation and would be spending up to $450 on the changes and mainly on payoffs for employees. Although there was a modest 1% upstick in sales in the last three months, Nike hasn’t witnessed a substantial sales surge in 2023.
While the company’s profit margin has seen improvement, the latter remains uncertain of its retail future as sales continue to dip. The share prices of Nike fell 10 percent after hours of trading, as there was a slowdown in the rise of sales. Along with Nike, other sporting apparel companies like JD sports and Sports Direct experienced a fall on the stock market.
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In the midst of the Covid-19 pandemic in 2020, Nike fired 700 employees in an effort to cut costs during the global lockdown. The inflation rates caused by Covid, Russia-Ukraine war as well as the economic slowdown in the United States and European Union and other factors have sparked a fear of recession in 2023 in western countries leading to many companies indulging in mass layoffs.
Meanwhile, Indian companies witnessed a 58 percent surge in layoffs, surpassing trends observed last year.
In 2023, a total of 1,175 tech companies laid off 2,60,509 employees in 2023 as compared with 1,064 tech companies letting go of 1,64,969 employees in 2022, as per data from layoffs.
