Nike Suffers $790 Million Loss, CEO Confirms Layoffs

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2020-06-27 17:31:30

“Woke” brand Nike suffered a stunning $790 million loss last quarter and has confirmed they are laying off staffers, Business Insider reported Friday.

Part of the massive loss comes due to the effects of the coronavirus response, the report said; however, Nike CEO John Donahoe said “layoffs were not related to the pandemic.”

The layoffs, according to the CEO, are part of an effort to restructure an “overburdened matrix,” according to Complex’s knowledge of an internal email sent from Donahoe.

“These decisions are exceptionally difficult because they impact friends and colleagues at Nike,” the CEO told employees via email, Complex said. “You have my personal commitment that we will put people at the center throughout this entire process. We will support everyone impacted by this transition.”

“Consumer Direct Acceleration is the next digitally empowered phase of our strategy,” Nike said in a statement to Business Insider. “We are building a flatter, nimbler company and transforming Nike faster to define the marketplace of the future. We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs.”

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