From NBC Universal:

Nike, the sneaker giant, is cutting 2% of its workforce, over 1,500 jobs, as part of a broader restructuring. CEO John Donahoe wants to invest in growth areas like running, women’s, and the Jordan brand to reignite growth. Layoffs will start this week and finish by the end of May.

It’s not clear which departments will be affected by the layoffs, which won’t include retail and warehouse workers. Consumers’ cautious spending and a demand slowdown in the retail industry prompted the decision. Nike is aiming to cut costs by $2 billion over the next three years, planning to simplify its product assortment and streamline its organization.

Divisions within Nike, including recruitment, sourcing, brand, and innovation, have already seen several weeks of layoffs. Oppenheimer downgraded Nike’s rating due to sluggish demand and competition, but CEO Donahoe assured that laid off staffers will receive necessary support. Nike believes this restructuring will make the company stronger in serving athletes and growing the sport.



Read more: Nike to lay off 2% of employees, cutting more than 1,500 jobs