Nike is cutting jobs at its EU headquarters in Hilversum, Netherlands, outside of Amsterdam, as part of a multi-year cost-cutting plan, according to early reporting from Reuters, citing internal sources at the EU headquarters, which currently has over 2,000 employees.
The sources did not make clear how many people were affected by the reported cuts at the Netherlands HQ.
Nike, Inc. announced a 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 the company’s fiscal Q2 results.
In February, Nike laid out a two-step plan to cut 740 employees at its U.S. headquarters in Beaverton, OR. Converse, a Nike Inc. subsidiary in Massachusetts, also cut jobs in a recent move. The company said at the time that it would likely cut about 2 percent of its total workforce, or more than 1,600 jobs, to lower expenses as demand for the brand comes under pressure.
To maintain transparency, Nike CEO John Donahoe communicated in an internal memo to employees in February that the company planned to cut jobs in Europe, the Middle East and Africa on timelines different from those at its U.S. offices.
Image courtesy Nike
