An American athletic footwear and apparel corporation, Nike is planning to sack hundreds of employees to cut costs.
Due to Nike’s poor sales over the last year the company has been cutting costs across the different departments. The company is planning to increase the automation of certain services to save $2 billion in costs.
This is the second largest layoff in Nike after the company fired 700 employees in 2020. The company laid off the employees due to Covid pandemic during to global lockdown.
Nike surpassed expectations in its second-quarter earnings with a significant 21% jump in profit to $1.03 per share, slightly outperforming revenue expectations at $13.4 billion. This indicates a resilient performance despite market challenges.
CEO John Donahoe emphasized investment in areas of potential, innovation, and agility. CFO Matthew Friend highlighted a focus on gross margin and cost management, preparing for a softer revenue outlook in the second half of the fiscal year.
Layoffs at Paytm
Paytm will sack over 1000 employees amid cost-cutting measures. The layoffs are currently impacting over 10 percent of the company’s entire workforce. The company reportedly wants to save 10-15% of staff costs over the current fiscal year.
“We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing”, the spokesperson said.
The reports also suggest that the majority of the layoffs are likely to impact employees from the lending business. Post this layoff Paytm has become one of the biggest layoffs in a new-age tech firm in the country.
Not only this there are various new economies or companies referred to as startups in India that have laid off over 28,000 employees in the first three quarters of 2023.
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