Share to ClassroomNike Plans Job Cuts After Weak Forecast
Nike, the world's biggest sportswear company, says it will cut more jobs and change the way the business is organised. It made this decision after it predicted that its sales would fall more than expected this year. In the last three months, Nike sold $11.2billion of products, a little less than experts expected. Nike does not know yet how many jobs will go, but it will start telling workers in 2027. The changes should save about $2.5billion.
Nike has had problems for several years. Its share price has fallen by about 75% in five years. Retail expert Matt Powell says the company made some big mistakes. It stopped selling through many shops and sold online instead. It also spent less money on new products, so it had to cut its prices. In China, sales fell by 26%.
The company's boss, Elliott Hill, wants Nike to focus on sports like running again and to have better relationships with shops. He says there is more work to do. Nike has also lost two famous football players, Kylian Mbappé and Lamine Yamal, to rival brands. In September, it was removed from a list of top US companies. Powell thinks the plan will start to work next year.
