Nike continues to struggle with the challenges of the global coronavirus pandemic as it has announced a fresh round of layoffs. The sneaker giant reportedly said that the latest job cuts are part of an effort to build a ‘nimbler and flattery company.’ This is in addition to the larger layoffs that it announced last year. During the last summer, the company had fired at least 700 employees in Oregon and several others across the company. However, the company has not disclosed the number of people affected by the decision. It did not even talk about from which department these people were.
Ironically, the development comes on a day when Nike announced its quarterly revenue. The company said that its total sales have gone up to USD 10.36 billion. This is better than last year when it was around USD 10.1 billion. While the number was not as expected, this is not at all a bad performance especially when the retail is going through turmoil because of the pandemic. The athletic outfitter said that disruption related to the coronavirus pandemic had an impact on the revenue performance. The company in a statement said that the rise in profit was a result, in part, of ‘lower wage-related costs.’ It said that the expenses have also reduced. To be specific, administrative expenses fell USD 242 million this year when compared to the previous year.
But the sales in North American dropped over 10 percent in the last quarter. However, Nike blamed congestion at ports in the United States and the shortage of shipping containers. The company said that fall has nothing to do with the brand weakness. Nike CEO John Donahoe said that the strong performance by the company even during a dynamic environment shows the grip it has over the market. “Global brand momentum along with innovative products has helped the company to maintain the lead,” Donahoe said.