17 Feb 2024

Nike Plans to Reduce Workforce by Over 1,600 Jobs Amidst Weakened Demand and Cost-Cutting Trend

In the corporate landscape, major players are initiating significant layoffs at the start of the year, with 82,307 job cuts announced last month alone—an increase of 136% from December. This surge, the second-highest for January since the 2009 financial crisis, is attributed to various factors, including companies readjusting after pandemic-induced over-hiring and reallocating resources towards areas like artificial intelligence.

Several notable layoffs in 2024

Google, under Alphabet Inc., is cutting hundreds of positions in its digital assistant, hardware, and engineering teams to reduce costs and enhance focus on artificial intelligence. The move is in response to increasing competition in AI from rivals like Microsoft Corp. and OpenAI. Inc. is announcing layoffs in its health care division after previous reductions of 27,000 workers in 2022 and 2023. CEO Andy Jassy aims to streamline costs following the company's rapid expansion during the pandemic.

Citigroup Inc. is undergoing a significant transformation, with CEO Jane Fraser aiming to reduce bureaucracy and increase profitability, resulting in the elimination of 20,000 roles.

DocuSign Inc. is cutting 6% of its workforce amid restructuring efforts following stalled talks to sell the company.

eBay Inc. will lay off 9% of its staff, approximately 1,000 job cuts, as staffing and expenses outpace growth.

Estée Lauder Cos. plans to cut up to 3,000 positions as part of a restructuring plan to respond more quickly to beauty trends fueled by social media.

Microsoft Corp. will lay off 1,900 people across its video-game divisions, including Activision Blizzard, following its $69 billion acquisition.

Nike Inc. is slashing its global workforce by about 2% to counter a weaker sales outlook and growing competition in the sportswear industry.

PayPal Holdings Inc. is cutting 2,500 jobs to cope with competition from Apple Inc. and Zelle.

Snap Inc. is reducing its workforce by approximately 10% worldwide to optimize its business execution amidst a slowdown in ad revenue.

United Parcel Service Inc. plans to cut 12,000 of its 85,000 management jobs to save over $1 billion and address challenges in its trucking brokerage business.

Warner Music Group will cut 10% of its staff, mainly from Uproxx and HipHopDx websites and its podcast network, aiming to reduce costs by $200 million annually. The company plans to reinvest the savings in new opportunities.

BlackRock Inc. plans to dismiss about 600 employees, approximately 3% of its global workforce, to reallocate resources amidst rapid changes in asset management.

Cisco Systems Inc. is set to cut thousands of jobs, around 5% of its workforce, due to a slowdown in corporate tech spending and subsequent sales growth challenges.

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