Nike Layoffs Reach Its European Headquarters in the Netherlands

Nike Inc. has cut staff in its European headquarters as part of a multiyear cost-cutting plan at the world’s largest sportswear company, according to people familiar with the matter.

The Nike campus in the Netherlands — located in the city of Hilversum, just outside of Amsterdam, and known internally as EHQ — is home to more than 2,000 employees.

Nike is laying off about 2 percent of its global workforce as part of a plan to slash $2 billion in costs. About 750 employees were let go at its global headquarters in Beaverton, Oregon. Converse, a Nike subsidiary in Boston, also eliminated some staff.

Chief executive officer John Donahoe said in an internal memo distributed to workers in February that the planned cuts in Europe, the Middle East and Africa would take place on different timelines than those in its home market.

The staff cuts in North America occurred in two phases earlier this year, starting in February, but dismissals in Europe didn’t occur until recently due to differences in local labor laws.

Nike doesn’t break out financial results for its European market. Europe, the Middle East and Africa accounted for about $13.4 billion in revenue for Nike, or around 26% of its global sales, last year.

A Nike spokesperson referred Tuesday to a company statement issued in February: “The actions that we’re taking put us in the position to right-size our organisation to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger.”

By Kim Bhasin and Lily Meier

Learn more:

How Nike Ran Off Course

The American sportswear giant is experiencing its worst slump in a decade. New competition is part of the problem but according to industry insiders and athletes, many of Nike’s wounds are self-inflicted: the results of disruptive restructurings, stalled innovation and uninspiring marketing.

Source link

About The Author

Scroll to Top