Nike responds to market changes with plans for a Nike Layoff in Oregon, affecting 740 headquarters employees.
On Friday, the company notified state and local officials about the workforce reduction at its Beaverton, Oregon headquarters. The Worker Adjustment and Retraining Notification Act mandated this notice.
The sportswear giant “will be permanently reducing its workforce at its World Headquarters” in a “second phase of impacts” that would begin by June 28, wrote Nike vice president Michele Adams in the notice, first reported by Reuters and Oregon Public Broadcasting.
Two months ago, Nike CEO John Donahoe communicated plans to reduce its workforce by about 2% in a memo to employees. The Wall Street Journal reported that the intended layoff would affect more than 1,600 employees. As of May 31, 2023, the company employed about 83,700 individuals.
“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” the company said in a statement to USA TODAY. “While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
Analyzing the impact, the Nike Layoff in Oregon will likely ripple throughout the company and local community. Those affected must navigate a competitive job market to secure new employment. Furthermore, reduced consumer spending may slow Oregon’s economy.
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