Image courtesy of 123rf.com

Nike Inc. (NYSE: NKE) recently implemented a significant cost-cutting measure: it laid off staff at its European headquarters in Hilversum, the Netherlands.

This move is part of a larger plan to reduce costs by $2 billion and the company’s global workforce by 2%. The news of these layoffs has positively impacted the company’s stock, currently trading at $97.59, up 1.95% over the day’s trading session and up 2.90% over the last five days.

Nike’s European Headquarters Hit by Layoffs

The Hilversum campus, known internally as EHQ, is home to over 2,000 employees. The European, Middle East, and Africa (EMEA) region significantly contributes to Nike’s revenue, accounting for $13.4 billion last year, representing approximately 26% of the company’s global sales.

In a February memo, CEO John Donahoe mentioned that the EMEA layoffs would occur on different timelines than North America due to local labor laws.

While the exact number of layoffs in Europe, the Middle East, and Africa was not specified, the cuts are part of the overall 2% global workforce reduction. 750 employees were laid off at Nike’s global headquarters in Beaverton, Oregon.

Nike Stock Performance and Key Metrics

At 12:02 PM EDT, Nike Inc. stock was trading at $97.59, with a market capitalization of $147.298 billion. The company’s PE Ratio (TTM) stands at 28.15, with an EPS (TTM) of 3.40. Nike offers a dividend of $1.36, yielding 1.39%.

The stock’s year-to-date return is -9.44%, while the 1-year return is -6.79%. However, the 5-year return is positive at +24.82%. Nike’s recent earnings date was June 22, 2024, and the next ex-dividend date is June 5, 2024.

As of 12:03 PM EST, Nike Inc. (NKE) stock is trading with a live market status. The stock price at 12:03 PM EST is $97.59, reflecting a +1.95% increase from the previous trading day. The stock has a beta of 1.16, indicating moderate volatility compared to the market.

More By This Author:

GameStop Reports Missed Q1 Results Early
Robinhood To Acquire Crypto Exchange Bitstamp In $200 Million Deal
3 Top Cryptos Worth Holding Beyond Bitcoin and Ethereum