WASHINGTON COUNTY, Ore. (KOIN) — Nike announced on Thursday its plans to reduce its number of product lines by 25% and to lay off 2% of its workforce.
The company has more than 70,000 employees worldwide, so that would mean 1,400 jobs.
KOIN 6 News looked into who the layoffs will affect locally as Nike has about 12,000 employees in Washington County alone, and about 10,000 of them at the headquarters. A 2% reduction would mean 200 jobs in the county.
The company’s announcement said it’s restructuring to create “a faster pipeline to serve consumers personally.”
However, a source said security was setting up protocol and guidelines for escorting people off campus last night. Sources also said a significant part of the restructuring includes “outsourcing some of the information technology department.”
Beaverton Mayor Denny Doyle said he’s watching the situation closely.
“When I got the first news this morning that this was going to happen, I don’t know who reported it, but it’s a 2% reduction globally, so what does that mean? That’s what we’re all on pins and needles about,” Doyle said.
Doyle also said, “The real key right now is the talented people that work there. There’s no shortage of job opportunities for people in those fields, so I think that people bounce back pretty quickly.”
According to an economist, Nike isn’t in any kind of trouble. It’s just restructuring to grab a larger share of the emerging middle-class market oversea.
Nike said a main focus will be the 12 key cities in 10 countries that it expects to represent more than 80% of its projected growth through 2020. Shares of Nike Inc. fell more than 2% to $53.35 on Thursday.
The Associated Press contributed to this report.