Downsizing continues at Nike.
Tennis giant told The Oregonian / OregonLive on Thursday that its efforts to build a “flatter and more agile company,”It led to an unspecified number of recent layoffs.
These latest cuts follow larger layoffs that the company announced last summer, which eliminated 700 jobs in Oregon by January and many more across the company. Nike did not say how many people lost their jobs recently, or in which departments.
Nike confirmed the new job cuts the same day that it announced quarterly revenue of $ 10.3 billion and profits of $ 1.4 billion in the quarter ended February 28. The company said its rising profits resulted, in part, from “lower wage costs”. Sales and administrative expenses fell by $ 242 million compared to the same period last year.
In fact, sales in North America fell by almost 11% in the last quarter. But Nike attributed this to container shortages and congestion at U.S. ports, not to any brand weakness.
“Nike’s strong results during a dynamic environment show the power to stay on the attack,” said John Donahoe, Nike’s CEO. “Fueled by attractive innovative products and global brand momentum, we continue to extend our leadership. Our strategy is working and we are excited about what lies ahead. “
Nike did not disclose the latest job cuts in Thursday’s announcement.
Nike shares closed Thursday at $ 143.17 a share, down $ 1.65. In the after-hours market, it dropped to $ 137.52.
In its statement on job cuts, Nike said: “This is a continuation of the work we started last summer to simplify our organization. We are building a flatter and more agile company and transforming Nike more quickly to define the market of the future ”.
The company seemed to indicate that further job cuts could occur.
“We are focused on transferring resources and creating capacity to reinvest in our areas of greatest growth potential,” said the company. “This process and the related timeframe vary in certain markets based on local labor laws.”