Proactive Investors - Nike (NYSE:NKE) has laid out restructuring plans which will see thousands of employees laid off after demand for its shoes has come under pressure.
Some 2% of the sport’s retailers global workforce, equating to 1,600 jobs will be cut, Nike revealed late on Thursday.
Overall pressure on consumers through higher mortgage and rental prices is said to have hit demand for high-priced goods, in turn dampening wholesale orders for sportswear from retail outlets.
The news of cuts comes after Nike laid out a three-year, US$2 billion savings plan in December, which included supply tightening and management reductions.
Such cuts are anticipated to cost between US$400 million and US$450 million in staff severance, with the company having employed 83,700 people as of May.
According to GlobalData analysts, the cuts come as Nike looks to get ahead of the curve on fears demand "could soften still further".