700 People Left Jobless Hours After Nike Put Caitlin Clark on a Pedestal With $20 Million Contract

Seems like the Caitlin Clark effect has not yet done its magic on Nike. Automation is taking over everything but who knew it would also force the sneaker mogul to follow suit? The sports athleisure giant recently announced a humongous 8-digit deal for the Fever star. However, they continue their 2% layoff decision with phase II. This time, it will hit Nike’s Global headquarters in Beaverton, Oregon.

Front Office Sports published the news of the layoff on their official X account. Seemingly, Nike will slash down around 740 jobs by June 28, 2024. The cuts are being made because the company has not been able to perform as innovatively and efficiently as it once did.

The CEO John Donahoe blames the COVID-19 pandemic and remote working conditions for the losses that the organization has faced in the last few years. He said, “It’s really hard to do bold, disruptive innovation, to develop a boldly disruptive shoe on Zoom.”

At the same time, Nike’s EVP and CFO Mattew Friend shed some light on the financial weaknesses that Nike has faced. Apparently, even though it has been two years since the world returned to its normal routine after the strict lockdown conditions, consumers have continued to be careful about their expenditures.

While the company has seen a 16% improvement in its pop-up shops, its online demand has seen an ugly drop. Moreover, new labels like On Running and Hoka have become a tough competition to the once dominating company. These new-generation brands not only won the consumer’s hearts with their innovative and relevant designs but also stock shares over Nike. Nonetheless, with the Clark deal, it looks like Nike has more tricks up its sleeve.

Is Nike x Caitlin Clark a profitable venture?

A few days ago, the world got to know that Nike is ending its NIL ties with the NCAA’s all-time leading scorer. Only to be followed by the news that she will get a $20 million deal along with a signature shoe in the new endorsement contract. There is no denying that Caitlin Clark has made her name echo throughout the stratosphere and has brought profits to companies she has joined hands with. Seems like this will be Nike’s wildcard to gaining its dominance back.

According to multiple popular faces, including Dan Patrick, not just young girls and women but everyone would want a Clark shoe. Quite similar to Sabrina Ionescu’s unisex “Sabrina 1.” With Nike trying to find its balance by replenishing $2 billion by the end of three years, it will be interesting to see how pivotal Caitlin Clark and her dominance play out for the brand.

Do you agree with Nike’s plan of motion?