Nike, Inc. detailed its second round of layoffs on April 19, filing a Worker Adjustment and Retraining Notification (WARN) Notice with the State of Oregon and addressed it to the Washington County (OR) Board of Commissioners and the City of Beaverton, OR.
In its filing, Nike, Inc. said that 740 positions would be permanently eliminated at its Beaverton World Headquarters (WHQ) across two phases of layoffs, including the first phase starting in February 2024. The second was expected by the end of the calendar for the second quarter. Nike had indicated 1600 positions or 2 percent of its employee base. This WARN notice only reflects the WHQ team.
The layoffs are part of the 2 percent workforce reduction Nike previously announced, which was planned as a two-step process. Phase 2 of the process is expected to be completed by June 28, 2024.
While the company detailed the number of cuts in the Friday filing, Nike said it would provide the job titles and the number of affected employees in each impacted job category upon request, once determined.
The filing indicated that bumping rights are not available for the impacted employees.
Nike, Inc. announced the broad restructuring program in December 2023 while slashing its revenue guidance for its fiscal year amid softening online sales, promotional pressures, and heightened macro headwinds, particularly in China and EMEA. The cost-cutting program is designed to shave $2 billion in expenses over the next three years. At the time, Nike CFO Matt Friend said that Nike would look for cost savings “both up and down our P&L and across our value chain” on a conference call with analysts to discuss fiscal Q2 results.
The text of the letter from Nike, Inc. is below.
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Re: Reduction in Workforce at Nike, Inc. WHQ
To Whom It May Concern:
Nike, Inc. will be permanently reducing its workforce at its World Headquarters located at One Bowerman Dr., Beaverton, OR 97005, and surrounding neighborhoods (WHQ North, South, West, Southwest, Southeast, Northwest and Northeast) (collectively referred to as “WHQ”).
As a result of a second phase of impacts, which will take effect by June 28, 2024, approximately 740 employees at WHQ will have been impacted by this and the recent prior permanent reduction of workforce.
Bumping rights are not available and affected employees will be provided notice directly.
Nike will provide the job titles and the number of affected employees in each impacted job category upon
request, once determined.
This notice is being provided consistent with 20 CFR § 639.7(f). If you have any questions, please contact the
undersigned at michele.adams@Nike.com; (503) 532-3402 or (888) 360-6453.
Sincerely Yours,
Michele Adams
VP, People Solutions
Nike, Inc.
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The letter was addressed to:
Michael Welter
Oregon Dislocated Worker Unit
Oregon HECC – Office of Workforce Investments
The Hon. Lacey Beaty
City of Beaverton
The Hon. Kathryn Harrington
Washington County Board of Commissioners
Image courtesy Nike, Inc.
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See below for more SGB Media coverage of the planned Nike layoffs and the company’s turnaround plan:
EXEC: Nike Inc. Set to Cut Approximately 1,600 Jobs in Restructuring Effort
EXEC: Nike Admits it Has a Problem, and Its Solution is… Air?
