Nike is cutting 2% of its current workforce, or more than 1,500 jobs, as part of a broader restructuring, the company said late Thursday.
The Beaverton, Oregon-based sneaker giant said it wants to better use its capital to invest in its growth areas, such as running, women’s and the Jordan brand.
“This is how we will reignite our growth,” CEO John Donahoe said in a memo obtained by CNBC.
“This is a painful reality and not one that I take lightly,” he added. “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”
Nike said the layoffs will take place in two phases. The company will start the first round this week, and finish the second by the end of its fiscal fourth quarter, which typically concludes at the end of May. Cuts in Nike’s EMEA region will be on a different timeline based on local labor laws, the company said.
It’s not clear which departments will experience layoffs, but they will not affect retail employees at Nike’s stores or warehouse workers, the company said.