According to a Wall Street Journal report, athletic footwear and apparel company Nike (NYSE:NKE) is planning to slash more than 1,600 jobs. The report stated that these job cuts will spare retail, distribution, and innovation staff. As of May 31, 2023, Nike had about 83,700 employees on its payroll.
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These job cuts are part of the company’s efforts to cut costs. In its Fiscal second-quarter earnings call, the company stated that it was aiming to reduce costs by around $2 billion and was looking at streamlining its organizational structure by “reducing management layers.”
Nike reported mixed fiscal second-quarter results and lowered its sales outlook. The company is facing sluggish consumer demand, especially in China and Europe.
Is NIKE Stock a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about NKE stock with a Moderate Buy consensus rating based on 20 Buys, eight Holds, and one Sell. Over the past year, NKE has slid by more than 10%, and the average NKE price target of $124.43 implies an upside potential of 17.3% at current levels.
