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Nike Cutting Costs To Maximize Margins
Liam Gill
December 21, 2023
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News of the Day
Nike is set to reduce costs by $2 billion over three years, focusing on streamlining products, increasing automation, and enhancing efficiency. Announced alongside fiscal second-quarter earnings, this cost-cutting includes an estimated $400-$450 million in restructuring charges, largely for employee severance. Amid recent layoffs and restructuring, Nike aims to address declining gross margins due to supply chain bottlenecks, inventory challenges, and high freight costs. The company's improved inventory position could help margins, but the broader retail environment remains challenging with deep discounts and inflation concerns. Investors are also closely watching Nike's performance in the crucial China market as it recovers from COVID-19 impacts.
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Some of my best thinking happens when we close the office for two weeks
So rare to not be taking calls, on slack all day, countless emails and traveling for work
Many believe in the hustle culture but I’ve found the balance of time off to be much more productive & long lasting
— Henri Pierre-Jacques (@hpierrejacques)
6:09 PM • Dec 21, 2023
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Insight of the Day
Over 100,000 tech workers in the US were laid off in 2023. This means there is a significant amount of talent currently on the market.
Are these future entrepreneurs? Maybe they will change careers? Here is some data from tech workers laid off in late 2022 and where they ended up:
Have you observed a trend toward cost-cutting and profit maximization over revenue growth in 2023? |
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