Nike Cuts Jobs as Turnaround Strategy Moves Forward

With an annual dividend yield of 3.67%, NIKE, Inc. (NYSE:NKE) is included among the 10 Best High-Yield Dividend Growth Stocks to Buy Right Now.

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On April 23, CNBC reported that NIKE, Inc. (NYSE:NKE) announced a new round of layoffs, affecting about 1,400 employees across the organization. Most of the cuts are concentrated in its technology department. In a note from COO Venkatesh Alagirisamy, the company said the layoffs are part of its broader “Win Now” turnaround strategy. The plan includes reshaping the technology team, modernizing Air manufacturing, shifting some Converse footwear operations, and integrating materials supply chain work into its footwear and apparel supply chain teams.

A Nike spokesperson said the layoffs are meant to better position the company for the current pace of sports and to support faster growth. The reductions span North America, Asia, and Europe, and account for less than 2% of Nike’s total global workforce.CEO Elliott Hill has been working to turn the business around after a period of weaker sales. There have been some early signs of progress, though not without setbacks.

Earlier this year, Nike announced 775 job cuts in January, mainly at its US-based distribution centers. The company linked those reductions to increased use of automation. At the time, it said the cuts were part of its effort to return to “long-term, profitable growth.”

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness. Its operations are organized across North America, Europe, the Middle East & Africa (EMEA), Greater China, and Asia Pacific & Latin America (APLA).

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