Nike CEO John Donahoe warned employees via email that layoffs were coming. “We will soon be forced to make some difficult choices that will likely result in a net reduction of jobs,” the email said, according to Complex Magazine.
After the coronavirus crisis closed most of its stores, Nike reported sales were down 38% with a net loss of $790 million in the fourth quarter.
While all stores are reopened now, the company is shifting resources and creating capacity to reinvest in its highest potential area and anticipates this realignment will cause a net loss of jobs, Nike said in a statement to media. Layoffs are expected to occur in July and the fall. The company said store employees and distribution and manufacturing centers are not expected to be impacted by the layoffs.
