Nike has filed documents with the state that show its recently announced layoffs will eliminate at least 500 jobs at the company’s world headquarters near Beaverton.
The sneaker giant announced the downsizing on July 22 after announcing a rare money-losing quarter in June. But it has not yet divulged the actual number of job cuts.
The total number of layoffs worldwide will be much higher than the 500 in Oregon losing their jobs. Nike said last week the cuts will result in termination costs of $200 million to $250 million.
John Donahoe, Nike’s new CEO and president, has enacted a plan to vastly simplify Nike’s complex corporate org chart. Multiple product category teams responsible for specific products for specific sports and consumers will be hacked down to just three — men, women and kids.
Like many other corporations, Nike has suffered during the global pandemic and the economic shutdown that came with it. The company reported a loss of $790 million, or 51 cents per share, during the period ended May 31, compared with net income of $989 million, or earnings of 62 cents a share, a year ago.
Total revenue was down 38% to $6.31 billion from $10.18 billion a year ago.
In its notice to the state, Nike said the cuts will include some members of its corporate leadership teams and their executive assistants. The company added that 192 of the laid off employees will come from one of three Nike childcare centers. The Oregonian/OregonLive reported earlier this week that Nike is closing the centers permanently.
The first “separations” will come around Oct. 1 with additional layoffs continuing afterwards.
— Jeff Manning, The Oregonian/OregonLive
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