In an effort to save as much as $2 billion in costs‚ Nike announced it would slash about 1‚700 jobs‚ equating to roughly 2% of its global workforce. As of May 31‚ 2023‚ the athletic apparel giant employs about 83‚700 people worldwide. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport‚ health and wellness have never been stronger‚” Nike said in a statement obtained by Bloomberg. Nike is cutting nearly 1‚700 jobs‚ as part of its plan to cut costs so it can create capacity to boost profitability and innovation. https://t.co/8ed1saaaix pic.twitter.com/vAS7vUFnaj — MarketWatch (@MarketWatch) February 17‚ 2024 Bloomberg reports: The job cuts follow an announcement in December that the company is looking for as much as $2 billion in cost savings‚ including reducing its workforce and simplifying its product lineup as growing consumer caution weighs on sales. That sparked a slump in Nike’s shares‚ which have struggled to recover and are down about 6% this year‚ including Friday’s decline. Oppenheimer analysts led by Brian Nagel downgraded their rating on Nike’s shares Friday‚ saying revenue is likely to remain sluggish due to “spotty consumer demand‚ lulls in product innovation and modest competitive incursions.” The analysts hailed the cost-cutting effort but added‚ “We believe benefits are likely to take time to materialize‚ particularly in areas such as product development and innovation.” Just Cut It: Nike Lays Off 1‚700 Employees https://t.co/QtrxGYpBdj — SALLY (@Sally718068071) February 18‚ 2024 Nike to lay off 1‚700 employees The sportswear giant is releasing 2% of its workforce to "right-size" the company to "get after our biggest growth opportunities."https://t.co/YwRtXhdQHt — VOZ (@Voz_US) February 19‚ 2024 Per CNN: Customers are changing their behavior‚ passing up discretionary purchases of goods — like expensive sneakers and athletic wear — for basics and experiences such as concerts and travel. Nike is also facing tough competition from upstart brands like Hoka and On Cloud. When presenting the company’s latest financial results in December‚ Nike finance chief Matt Friend said its gloomier outlook reflected “indications of more cautious consumer behavior around the world” and also mentioned “increased macro headwinds in China and in Europe.” China‚ the world’s second-largest economy‚ is facing huge challenges‚ from downbeat consumers to a real estate slump and weaker exports. Meanwhile‚ Europe avoided a recession by the slimmest of margins in the last three months of 2023‚ with its economy flatlining‚ official data confirmed Wednesday. And Germany‚ the region’s biggest economy‚ shrank last year for the first time since the onset of the Covid-19 pandemic.