Nike To Lay Off 1% Corporate Staff: Report

Nike (NKE) is reportedly planning another round of layoffs expected to impact less than 1% of its corporate staff.

According to a CNBC report, the layoffs will not affect Nike’s EMEA and Converse businesses; however, it is unclear how many jobs will be impacted.

Nike announced plans to lay off 2% of its staff previously in February, impacting over 1,500 jobs. The fresh layoffs are part of CEO Elliott Hill’s efforts to realign the business and to change how teams are structured within the corporation, the report said.

On Stocktwits, retail sentiment around NKE stock trended within the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

According to the CNBC report, leaders were identified in July to head new sport-focused teams, unlike the previous segmentation of the business into women’s, men’s, and kid’s. A small number of staff will depart as a result of the changes, while some will take on a new position or level, and some others will join a new team or report to a new manager, Nike said in a memo to staff.

Employees will get to know if they will be impacted by the layoffs by September 8, and a majority of the new roles will take effect on September 21, the report said. The memo also said that corporate employees based in an office location in the U.S. and Canada will work remotely next week to make space for conversations regarding the layoffs.

NKE stock is up by 3% this year but down by about 5% over the past 12 months.

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