Nike cuts 740 jobs amid challenges facing activewear industry

Nike, the iconic sportswear giant, is facing tough times as it announces layoffs of approximately 740 employees at its Beaverton, Oregon, headquarters. This move is part of a three-year cost-cutting plan aimed at saving $2 billion following a decline in sales.

The cuts will affect employees at One Bowerman Drive and surrounding neighborhoods, collectively known as WHQ. This decision comes as Nike, like many other activewear companies, grapples with softening consumer demand in the wake of the pandemic.

Despite these challenges, Nike remains optimistic about the future, buoyed by the increased consumer interest in health and fitness. The company’s chief financial officer, Mike Friend, highlighted the positive industry tailwinds and the upcoming Paris Olympics as factors that could benefit Nike in the long run.

In a bid to make a deeper push into fitness and wellness, Nike has been laying the groundwork for new initiatives. The brand recently hosted its first-ever Nike Well Festival in London, focusing on movement and mindfulness. Additionally, Nike Studios, an in-person boutique fitness experience, is set to open in California and Austin, offering a unique fitness experience for consumers.

While the activewear space may seem dreary at the moment, Nike is encouraged by the growing interest in health and fitness, signaling a potential shift in consumer behavior that could benefit the brand in the long term.