Donahoe emphasized that the cuts wouldn't affect store employees, store managers, or distribution center workers. However, the precise extent of the layoffs remains uncertain, as the company had already begun quietly reducing its workforce in December. Nike's decision also reflects a broader challenge faced by the company during these times. With consumers becoming more cautious about spending their hard-earned money on nonessential items, Nike is feeling the pressure to adapt. This pressure intensified with the rise of competing footwear and activewear brands, causing Nike to reassess its market dominance. As Nike grapples with these challenges, it must also confront the need to cut costs. In December, the company warned of the necessity to reduce expenses by $2 billion over three years. Nike's announcement of workforce reductions underscores the challenging landscape it navigates. Donahoe recognizes the gravity of the situation and is taking steps to address it.