Nike to cut 1,600 jobs to reduce costs, reinvest

Nike is cutting 2% of its global workforce, or a little over 1,600 jobs, as the athletic wear giant aims to cut costs and reinvest its savings into what it sees as big growth areas like sport, health and wellness.

Nike, based in Beaverton, Oregon, joins a growing number of companies including Estee Lauder and Levi Strauss & Co. that have announced job cuts in recent weeks.

As of May 31, Nike employed roughly 84,000 workers, according to its annual report.

In December, Nike reduced its annual sales outlook for the fiscal year after reporting second-quarter sales results that fell short of company expectations. The reduced outlook came as company executives told analysts that it has seen more cautious consumer behavior worldwide.

At the time, Nike said it would be cutting up to $2 billion over the next three years as it aims to simplify product assortment and increase automation.

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