Nike‘s layoffs at its Beaverton, Ore. headquarters will have impacted hundreds of employees by June, according to a WARN notice filed with the state of Oregon on Friday and reported by Footwear News.
Nike said in the filing that by June 28, 740 employees will have been let go as part of two rounds of layoffs. Nike confirmed that it was laying off 2 percent of its workforce in February. And as early as November, several Nike employees had taken to LinkedIn to share they were laid off from the company amid a broader C-suite shakeup across design and marketing.
“Nike’s always at our best when we’re on the offense,” Nike said in a statement. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger. While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
Nike in December first alluded to forthcoming layoffs when said it could soon face employee severance costs as it rolled out a plan to “streamline” its organization and save up to $2 billion in costs over the next three years.
Nike has recently faced criticism for what experts and analysts see as a lack in innovation in its product pipeline. In December, Nike touted a new plan to build a “multiyear cycle of innovation” to win over consumers, which in part included streamlining the distribution of some of its key franchises to drive more brand heat. Since then, Nike has touted new products like the Air Max DN, the Pegasus Premium and the Pegasus 41.
In explaining the Swoosh’s innovation lag, Nike chief executive officer John Donahoe last week ignited backlash when he said remote work was to blame. According to analysts, Nike’s innovation issues stem from relying too heavily on best-sellers instead of creating new franchises, as well as a broad loss of talent at the top and prioritizing financial goals over brand equity.
