Nike plans to cut more than 1,600 jobs in cost-cutting effort

© Reuters. FILE PHOTO: People visit the Nike store on Fifth Avenue during the holidays in New York, USA, December 9, 2022. REUTERS/Eduardo Munoz/file photo

(Reuters) – The sportswear giant Nike (NYSE:) plans to cut its workforce by about 2%, or more than 1,600 jobs, in cost-cutting measures, the Wall Street Journal reported Thursday.

The job cuts are expected to begin Friday, with the second phase to be completed by the end of the quarter, the report said, citing a staff memo.

According to the WSJ report, the layoffs are not expected to affect store and distribution center employees or innovation team employees.

The Air Jordan 1 shoe maker is using its resources to increase investments in categories such as running, women’s apparel and Jordan Brand, CEO John Donahoe said in a memo.

Nike did not immediately respond to Reuters’ request for comment.

The report comes after the company cut its full-year profit forecast in December and rolled out a $2 billion cost-cutting plan, citing cautious consumer spending.

Nike said it would incur approximately $400 million to $450 million in layoff costs this quarter.