Nike to Cut Over 1,600 Jobs in Cost-Cutting Drive

Nike to Cut Over 1,600 Jobs in Cost-Cutting Drive

According to a report by the Wall Street Journal, sportswear giant Nike (NYSE:NKE) is set to reduce its workforce by approximately 2%, equivalent to more than 1,600 jobs, as part of a cost-cutting initiative. The layoffs are scheduled to commence on Friday, with a second phase expected to conclude by the end of the quarter, as mentioned in an internal memo obtained by the publication.

However, employees in stores, distribution centers, and the innovation team are anticipated to remain unaffected by the job cuts, as per the report.

CEO John Donahoe, as quoted in the memo, highlighted the company’s strategic shift to allocate resources towards key areas such as running, women’s apparel, and the Jordan brand.

As of now, Nike has not provided an immediate response to a request for comment from Reuters.

This announcement follows Nike’s decision in December to revise its annual revenue forecast downwards and implement a $2 billion cost-saving strategy, citing subdued consumer spending as the primary reason.

The company had previously disclosed an estimate of approximately $400 million to $450 million in severance costs related to employee layoffs for the current quarter.

Oil Prices Dip Amidst Demand Concerns and Economic Uncertainty, IEA Report Highlights Challenges Ahead

Oil prices experienced a slight decline in Asian trading on Friday, influenced by persistent worries regarding weakening demand following cautionary remarks from the International Energy Agency and a series of lackluster economic indicators. Despite this, crude prices were on track for modest weekly gains after navigating through volatile fluctuations during the week.

A softer dollar provided some relief to oil prices as the greenback retreated sharply from three-month highs, in response to weak U.S. retail sales data. The focus now shifts to U.S. producer price index inflation data for further insights into the trajectory of interest rates. The week began with stronger-than-expected consumer inflation data, leading to the market largely pricing out early interest rate cuts by the Federal Reserve.

Brent oil futures for April delivery dipped 0.2% to $82.71 a barrel, while West Texas Intermediate crude futures slid 0.1% to $77.49 a barrel by 20:15 ET (01:15 GMT). Despite this, both contracts were up approximately 1% for the week. However, the overall outlook for oil prices remained bleak, particularly following an IEA report on Thursday which indicated a slowdown in global oil demand. The IEA revised its 2024 global oil growth forecast marginally downwards, attributing it to record-high U.S. production and the reluctance of OPEC members to implement deeper supply cuts.

Recession signals from major economies like the UK, Japan, and the Eurozone added to concerns about waning demand for oil in the near future. Despite expectations of a sluggish economic rebound in top importer China, supported by the week-long Lunar New Year holiday, inventory data earlier in the week showed a significant surge in U.S. crude stockpiles, fueled by production reaching record highs above 13 million bpd. Strong U.S. production is anticipated to fill any supply gaps left by OPEC and potential disruptions in the Middle East.

Agios Pharmaceuticals Reports Positive Clinical Updates and Strong Financial Position, Poised for Therapeutic Advancements

During its recent earnings call, Agios Pharmaceuticals Inc. (AGIO) unveiled promising updates, signaling significant progress in its clinical development endeavors for mitapivat and AG-946, potential therapies for various hematologic disorders.

Noteworthy advancements include positive data from pivotal studies, notably the Phase 3 ENERGIZE trial for mitapivat in non-transfusion-dependent thalassemia, paving the way for potential product launches in the upcoming years. Bolstered by a robust financial standing, boasting $806 million in cash and investments by the close of 2023, Agios is primed to propel its late-stage development initiatives forward, catering to pressing unmet needs in conditions such as sickle cell disease and thalassemia.

Key Highlights:

• Agios Pharmaceuticals announced favorable outcomes from pivotal studies encompassing mitapivat and AG-946.
• Preparations are underway for potential launches of mitapivat targeting thalassemia in 2025 and sickle cell disease in 2026.
• Agios anticipates submitting a regulatory filing for mitapivat to the FDA by year-end.
• The company aims to secure the distinction of being the first to secure approval for a therapy covering all thalassemia subtypes, with a focus on penetrating markets including the US, EU5, and the Gulf region.
• Agios closed the fiscal year with a robust financial footing, boasting $806 million in cash and investments.

Investing on a Friday? Well, it’s like buying dessert before the weekend—you’re setting yourself up for a sweet start! While others might be winding down for the weekend, savvy investors know that Friday can be the perfect time to seize opportunities before the market takes its weekend breather. Just remember, like choosing the perfect weekend outfit, do your research and make sure your investments align with your financial goals. Who knows, maybe your Friday investment could turn into the cherry on top of your portfolio sundae!