Nike, the renowned sportswear giant, has revealed plans to lay off 740 employees at its Oregon headquarters in the United States, as outlined in a letter released by the company on Friday. 

This strategic move comes as part of Nike's efforts to reduce costs in response to a projected revenue decline in the first half of the fiscal year 2024-25. Michele Adams, Nike's vice president for people solutions, has confirmed that the "second phase of impacts" is scheduled to commence by June 28. 

This announcement follows Nike's previously declared cost-saving initiative in December, aiming to trim $2 billion over the next three years.

In February, Nike unveiled its intention to eliminate approximately 2% of its workforce, translating to over 1,600 positions. As of May 31, 2023, Nike boasted a workforce of around 83,700 employees. 

Despite facing challenges, including a nearly 13% drop in shares since the beginning of the year, Nike witnessed a slight increase in after-hours trading following the layoff announcement. After-hours trading refers to the buying and selling of securities outside regular market hours.

Nike's decision to downsize its workforce reflects a broader trend among companies in the United States and Canada seeking to manage costs amidst an uncertain demand landscape. 

In March, Nike hinted at an anticipated revenue decline in the first half of fiscal year 2024-25 by a low-single-digit percentage, citing the need to streamline certain product lines.

As Nike navigates these challenges, the company remains committed to its long-term goals while strategically adapting to market conditions.