Sport goods manufacturer: Nike launches new savings program
The sports goods company Nike is expecting a significant decline in sales. By 2031, costs are to be reduced by $2.5 billion. Further job cuts are also planned.
Nike has announced a new cost-saving program called "Pace" which aims to reduce costs by $2.5 billion by 2031. The program involves restructuring the company's operations to support its "Sport-Offensive" strategy, including modernizing supply chains and expanding in India. Nike expects to incur costs of around $1 billion, mostly related to staffing, and has already set aside $300 million for severance payments.
The company forecasts a significant drop in revenue and profit for the current financial year, with a high single-digit percentage decline in sales and earnings per share of $1.15-1.35, down from $2.10 last year.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
Other reports of this story
- Sport goods group: Nike tightens savings program handelsblatt.com
