Nike initiates layoffs at its European headquarters –
Home >> Textile News >> Nike initiates layoffs at its European headquarters

Nike initiates layoffs at its European headquarters

2024-06-14 10:43:18 CCFGroup

According to multiple media reports, Nike has initiated layoffs at its European headquarters as part of its multi-year cost-cutting plan.

Nike's headquarters in the Netherlands is located in Hilversum, just outside Amsterdam, internally referred to as EHQ, with over 2,000 employees.

In February of this year, Nike announced a 2% reduction in workforce as part of a $2 billion cost-cutting plan. With approximately 83,700 employees globally, this could mean over 1,600 positions may be affected.

The layoffs in North America occurred in two phases starting from February, but due to differences in local labor laws, the European layoffs have only recently begun.

Nike executives had previously announced restructuring costs of up to $400-450 million for the second half of the fiscal year 2024, primarily related to severance. As for the $2 billion cost-cutting plan, Nike announced measures over the next three years, including streamlining product categories, improving supply chain efficiency, leveraging scale, increasing automation, simplifying organizational structure, and enhancing procurement capabilities. This also marks a shift in the company's strategy-focusing on profitability rather than sales growth after addressing high inventory issues.

It is worth noting that Converse, the globally renowned sportswear brand headquartered in Boston, will also be undergoing formal layoffs.

It is currently unclear how many Converse jobs will be affected by this decision, but a spokesperson for Converse recently stated in a release that the company is "realigning some teams to better support future performance growth." "We can confirm that the overall adjustment changes for Converse employees are part of Nike's overall 2% workforce reduction plan. However, we are operating on a separate timeline."

Aside from Converse layoffs, approximately 750 employees at Nike's global headquarters in Beaverton, Oregon, have already been laid off. The company's CEO, John Donahoe, previously stated in an internal memo to employees that the layoff plan for Europe, the Middle East, and Africa would follow a timeline different from that of domestic markets.