Nike Inc.
The company's campus in Hilversum, Netherlands, employs over 2,000 staff members, according to a report from Bloomberg.
The report cited a Nike spokesperson who reiterated a statement from February, emphasizing that the workforce adjustments are meant to align the organization with its most significant growth opportunities.
The global workforce reduction includes approximately eliminations at its main office in Beaverton, Oregon, and reductions at Converse, a subsidiary based in Boston.
Recently, job cuts have reached Nike's Converse footwear brand, which is famous for its Chuck Taylor and One Star sneakers. It accounts for about 5% of Nike's total sales.
John Donahoe, Nike's CEO, mentioned in an internal memo in February that the cuts in Europe, the Middle East, and Africa would follow different timelines compared to the U.S.
The discrepancy is attributed to varying labor laws. While North American staff reductions occurred in February, European layoffs were delayed until more recently.
Nike does not provide specific financial results for its European market. However, the region, including the Middle East and Africa, generated approximately $13.4 billion in revenue last year, making up around 26% of the company's global sales.
Nike reported third-quarter revenue of $12.429 billion, beating the consensus estimate of $12.281 billion. Adjusted earnings per share of 98 cents beat a Street consensus estimate of 74 cents per share.
Nike stock has lost more than 9% in the last 12 months. Investors can gain exposure to the stock via Vanguard Consumer Discretionary ETF
Price Action: NKE shares closed higher by 0.36% at $94.74 on Tuesday.