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Nike will cut about 2% of jobs due to weak profits. international business news

Nike said on Thursday that it would happen Cutting about 2% of its total Number of Employeesor more than 1,600 jobsAs the sportswear giant looks to cut back Cost After showing weak profits this year.
Nike’s global peers Adidas, Puma and JD Sports have also warned of weak earnings this year as consumers cut back on non-essential spending.
In December, Nike outlined a $2 billion savings plan over the next three years through steps including consolidating supply of certain products, improving its supply chain, reducing management layers and increasing the use of automation. Was.
The company also announced it would incur approximately $400 million to $450 million in employee severance costs in the third quarter.
Nike had about 83,700 employees as of May 31, 2023, according to company filings.
The Wall Street Journal, which first reported the news, said the cuts are expected to begin Friday and the second phase will be completed by the end of the current quarter.
The layoffs are not expected to impact store and distribution center employees or its innovation team, the report said.

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