The downsizing continues at Nike.
The sneaker giant told The Oregonian / OregonLive on Thursday that its efforts to build a ‘flatter, smarter business’,“Has led to an unspecified number of recent redundancies.
These latest cuts follow larger layoffs the company announced last summer, which eliminated 700 jobs in Oregon and many more across the company. Nike would not say how many people have recently lost their jobs or in which departments.
Nike confirmed that the new job cuts the same day they announced quarterly revenue of $ 10.3 billion and a profit of $ 1.4 billion in the quarter ended February 28. Sales and administrative expenses decreased by $ 242 million compared to the same period a year ago.
North American sales declined by nearly 11% last quarter. But Nike blamed the shortage of shipping containers and congestion in US ports, and not on any weak weakness.
“Nike’s strong results during a dynamic environment show the strength to stay on top of the offense,” said Nike CEO John Donahoe. “Driven by compelling innovative products and global brand momentum, we continue to expand our leadership. Our strategy is working and we are excited about what lies ahead. ”
Nike did not announce the latest job cuts in the announcement on Thursday.
Nike’s stock closed at $ 143.17 a share on Thursday, down $ 1.65. In after-hours trading, it dropped to $ 137.52.
In its statement on job cuts, Nike said: “This is a continuation of the work we started this past summer to simplify our organization. We are building a flatter, faster business and transforming Nike faster to define the market of the future. ‘
It seems that the company is indicating that there may be even more job cuts.
“We are committed to shifting resources and creating capacity to reinvest in our growth potential with the greatest potential,” the company said. “This process and related time frame will vary in certain markets based on local labor laws.”