Nike is, according to Bloomberg, implementing layoffs across its European headquarters as part of a global strategy to reduce operational costs by $2 billion. The job cuts, impacting roughly 2 percent of its workforce worldwide, have already seen around 750 employees dismissed from its Beaverton, Oregon headquarters. The reduction extends to its European offices located in Hilversum, Netherlands, where more than 2,000 employees are based, and at its subsidiary, Converse, in Boston.
According to Nike’s CEO John Donahoe, the layoffs in Europe occurred later than those in North America due to variations in local labor laws. In an internal memo earlier this year, Donahoe outlined the multiphased layoff timetable. Despite the cutbacks, Nike’s operations in Europe, the Middle East, and Africa still generated approximately $13.4 billion, representing about 26 percent of its global sales last year.
In response to inquiries about the layoffs, a Nike spokesperson reiterated the company’s commitment to optimizing its organization to capitalize on a growing interest in sports, health, and wellness, as stated in a February press release.
Read more: Nike announces 2% workforce reduction
Read more: Nike’s headquarters to undergo major layoffs, impacting hundreds
