NEW YORK - Sportswear giant Nike plans to reduce its workforce by about 2 per cent, or more than 1,600 jobs, in a cost-cutting move, the Wall Street Journal (WSJ) reported on Feb 15.

The job cuts are expected to start on Feb 16, and a second phase will be completed by the end of the quarter, the report said, citing an employee memo.

The layoffs are not expected to impact employees in stores and distribution centres or those in its innovation team, according to the WSJ report.

The Air Jordan 1 shoemaker is using its resources to increase investment in categories like running, women’s apparel and the Jordan brand, the report quoted chief executive John Donahoe as saying in the memo.

Nike did not immediately respond to a Reuters request for comment.

The job cuts follow an announcement in December that the company is looking for as much as US$2 billion (S$2.7 billion) in cost savings, including reducing its workforce and simplifying its product line-up, as growing consumer caution weighs on sales.

That sparked a slump in Nike’s shares, which have struggled to recover and remain down about 2 per cent in 2024.

Nike had said it would incur about US$400 million to US$450 million in employee severance costs in the current quarter. REUTERS, BLOOMBERG