Nike (NYSE:NKE) stock is in the red this morning after the athletic apparel giant confirmed additional job cuts as part of a “broad restructuring.” What do you need to know about Nike layoffs?
Well, this morning, news broke that the Oregon-based company has quietly cut employees over the past several weeks. The layoffs have come across a number of the company’s divisions, “including human resources, recruitment, sourcing, brand, engineering, digital products and innovation.”
Worth noting, Nike has apparently not yet alerted the state of Oregon about its layoffs, which it “would be required to do if it lays off 500 workers in a 90-day period” according to Matthew Kish of The Oregonian.
“I feel like they want to keep it confidential,” an anonymous laid-off Nike employee told The Oregonian. “There’s been no communication at all.”
Nike’s last bout of layoffs came in 2020, when the company cut 700 workers.
Nike Layoffs Come Amid Stagnant NKE Stock
Today’s news comes as something of a follow-up to the company’s November organizational changes. Last month, the company announced new heads of its innovation, design, marketing and technology departments. This was, in itself, a follow-up to the company’s May “senior leadership changes,” when Nike announced a series of innovation-driven changes, including new presidents.
Perhaps reasonably so, Nike has been on the decline recently. Increased competition from the likes of Hoka and Merrell and a general decrease in the popularity of its once-prestigious Air Jordan and Air Max brands has weakened the once-dominant sports brand.
“There is not enough compelling new product offerings, and the old product has become stale,” said Williams Trading analyst Sam Poser.
NKE stock is down about 3% so far this year, even as the S&P 500 is up about 20%. Nike is set to release quarterly earnings results later this month, on Dec. 21. The results should offer some insight into whether shares of the company will continue to slide or manage to bounce back
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.