Nike Announces $2 Billion Cost-Cutting Plan Amid Lowered Sales Outlook

Shares Fall Over 10% as Company Braces for Significant Layoffs and Restructuring Costs

Nike has announced plans to cut costs by about $2 billion over the next three years, potentially resulting in significant layoffs.
The cost-cutting measures include simplifying product ranges, increasing automation, and streamlining the organization.
The company has lowered its sales outlook for the year, citing increased macroeconomic headwinds, particularly in Greater China and Europe.
Nike's shares fell by more than 10% following the announcement.
The cost-cutting plan is expected to cost Nike between $400 million and $450 million in pre-tax restructuring charges, primarily related to employee severance costs.