Nike is reportedly planning to axe around two per cent of its workforce.

The news comes after the company announced it would deliver $2 billion in cost savings over the next three years.

The company’s fiscal 2024 financial results for the second quarter ended 30 November recorded a revenue increase of only one per cent to $13.4 billion.

The sportswear giant said that it would find savings in streamlining the organisation, increasing automation and technology, and simplifying its product range.

In an internal email seen by the The Business of Fashion, Nike chief executive John Donahoe said: “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

The note also said that the company would regain growth by redirecting resources towards funding its most important categories, including women’s, running, and the business’ Jordan brand.

Nike told staff that the job cuts would take place in two phases - one taking place this week and the next by the end of its fourth quarter.

---