Nike has decided to lay off more than 700 employees at its U.S. headquarters to cut costs.
According to foreign media, Nike Vice President Michelle Adams said in a document submitted to the Oregon authorities, where the headquarters is located, that the company will reduce 740 employees by the end of June.
Nike CEO John Donaho said in December last year that he would save 2 billion dollars by reducing global employees by 2 percent (about 1,600 employees) over the next three years. Nike fired the company for the first time in February.
Amid slowing sales, Nike’s stock price has fallen by 13 percent this year. It also fell by 0.14 percent in after-hours trading on Wednesday.
Citing local Swiss media, Reuters reported that UBS, which merged Credit Suisse (CS), will make five layoffs this year, starting in June, and plans to save 12 billion Swiss francs.
Recently, many companies have been cutting costs by reducing their headcount. Reducing the number of employees can lead to immediate profits, but many people lose their jobs. The company will have to think that people’s livelihoods can be threatened for the company’s benefit.
JENNIFER KIM
US ASIA JOURNAL
