The second phase of layoffs is hitting Nike’s corporate headquarters in Oregon effective June 28, according to a Worker Adjustment and Retraining Notification filing on Friday. The layoffs are part of the 2% workforce reduction Nike announced in February, which is taking place across two phases, the company confirmed via email.
After the layoffs in June, about 740 employees total will have lost their jobs at Nike’s Oregon headquarters over the two phases, per the filing. Nike said job titles and the number of employees in each category would be provided at a later date, once the company has determined them. Bumping rights are not available for the impacted employees.
“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement, echoing the statement provided to Retail Dive when layoffs were first announced. “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
The layoffs are tied to a cost-savings plan Nike unveiled in December, which is aimed at generating up to $2 billion in cumulative savings over three years. Based on the company’s last annual report, the layoffs to 2% of its total workforce will impact more than 1,600 people. Savings from the plan are set to be reinvested in driving growth, innovation and profitability.
The layoffs come as Nike is looking to tweak its strategy following challenges created by its DTC focus. CEO John Donahoe in March said Nike is “not performing at our potential” and vowed to make “important adjustments” to its DTC strategy. CFO Matt Friend added at the time that the brand had started streamlining support and operating functions, as well as cutting back on management layers. Instead, Nike is investing in areas like design, product creation and merchandising.
The company is prioritizing bolder marketing, wholesale partnerships and better product innovation moving forward. On that last point, Nike introduced a new innovation cycle this month that focuses on improvements to the Air franchise. The retailer has been steadily returning to wholesale partners it previously backed away from, and making key hires, including a new vice president of men’s apparel design.