Nike to cut 700 jobs at its Oregon headquarters by 2021
Kristen Lupo, Nike's vice president of Total Rewards, said in the statement that bumping rights will not be available for affected employees and that those not represented by a labor organization will be notified directly.
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Approximately 700 employees at Nike's world headquarters in Beaverton, Ore., will be laid off in a "permanent reduction of workforce" by Jan. 8, 2021, according to an updated WARN notice issued to the Oregon Higher Education Coordinating Commission's Office of Workforce Investments on Monday.
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Kristen Lupo, Nike's vice president of Total Rewards, said in the statement that bumping rights will not be available for affected employees and that those not represented by a labor organization will be notified directly.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 77.39 | +2.29 | +3.06% |
The move, originally announced in August, previously estimated at least 500 employees would be laid off, resulting in termination costs of approximately $200 million to $250 million.
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The layoffs come in response to the coronavirus pandemic's ongoing effects on Nike's businesses. In its fiscal fourth quarter that ended May 31, Nike reported an unexpected loss. Its revenue fell 38% after digital sales failed to make up for losses in physical stores shuttered to combat the spread of the virus.
Recently, however, the athletic apparel maker seems to be rebounding. It posted a solid quarterly profit driven by soaring online sales of its sneakers and workout apparel. Nike reported a net profit of $1.5 billion profit in the first quarter, or 95 cents per share, for the three-month period ending Aug. 31, up 11% from the same 2019 quarter.
The company's digital sales rose 82%, helping offset declines in its wholesale business and company-owned stores. Meanwhile, revenue for the quarter held steady at $10.6 billion, a 1% decline from the previous year.
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| XOM | EXXON MOBIL CORP. | 121.78 | -0.14 | -0.12% |
| BA | THE BOEING CO. | 149.27 | +5.87 | +4.09% |
Nike isn't the only business cutting jobs due to the pandemic, with oil giant ExxonMobil announcing a similar move slashing approximately 1,900 jobs and airplane manufacturer Boeing announcing it will reduce its global workforce to about 130,000 employees by the end of 2021 compared to its current level of approximately 145,000 employees.