Nike sacks 1,600 employees to tackle increasing competition

Nike Inc. is continuing its cost-cutting initiatives in response to a lower sales outlook and increasing competition by cutting roughly 2% of its personnel worldwide.

The Oregon-based company, which employs roughly 83,700 people worldwide, did not disclose the exact number of workers that will be impacted.

“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.

The corporation announced in December that it is seeking to save up to $2 billion in costs, which includes cutting back on staff and streamlining its product line as rising consumer caution affects sales. These job layoffs come after that declaration.

Nike's stock fell precipitously as a result, and it has since recovered only weakly, down roughly 2% so far this year.

Two phases will comprise the job losses, according per a letter obtained by Bloomberg News from Nike. The second phase will be finished by the conclusion of the company's fourth quarter, while the first phase will begin on Friday and continue into the next week.