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Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan

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Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan

Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.

In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”

“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”

Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.

In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.

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The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.

“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.

Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.

The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.

Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.

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Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.

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Commentary: The right-wing attack on science reaches a nadir, but it could get worse

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Commentary: The right-wing attack on science reaches a nadir, but it could get worse

The tally from Trumpian attacks on science now includes billions of dollars in damage to farmers and ranchers and assaults on scientists’ freedom of speech

One of the rules I came to live by during my years of covering global trouble spots is: “Never assume that things can’t get worse.”

But it will be hard to find a worse display of shameful servility to the Trump administration by a scientific organization than the American Diabetes Association provided on Friday.

During the organization’s annual conference in New Orleans, five of its leading members — four former presidents and the current editor of Diabetes Care, its official journal — were distributing paper copies of an editorial from the journal decrying the administration’s aggressive attack on scientific research and funding.

The seeming endorsement by the ADA of the current administration’s approach to science and of its attacks on freedom of speech is unconscionable.

— Open letter to American Diabetes Association

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Suddenly they were confronted by security guards and New Orleans police and manhandled out of the hall. (A video is here, courtesy of MedPageToday.)

Their papers were confiscated. They were ordered to surrender their passes and were informed that if they tried to reenter the hall they would be arrested for trespassing.

“We printed 1,000 copies of the editorial, at my personal expense, and we hoped that 200 people who hadn’t seen it would read it,” Steven Kahn, director of the Diabetes Research Center at the University of Washington, editor of the journal and the lead author of the editorial, told me.

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Instead, the editorial has become a must-read, with tens of thousands of page views and widespread condemnation of the conference organizers’ actions.

An open letter to the ADA started by David Nathan of Massachusetts General Hospital, titled “Shame on You” and stating that “the seeming endorsement by the ADA of the current administration’s approach to science and of its attacks on freedom of speech is unconscionable” has more than 6,400 signatories on change.org as of this writing.

The Diabetes Association implied in an official statement that the scientists had breached IRS regulations that include “maintaining a strictly nonpartisan environment at all organizational events.” On Wednesday, the organization said it would commission “a thorough independent review of the events that occurred.”

The organization’s action underscores one reason why the Trump administration’s wholesale attack on scientific research has reached a level that, as I’ve written, will have generational ramifications: It’s because some of our most august scientific organizations have failed to stand up for principle.

“It’s part of a larger systems failure among the academic medical centers, research universities, scientific and professional societies and the National Academies,” says Peter Hotez of Baylor College of Medicine, a vaccine expert and veteran adversary of pseudoscience.

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The attention given to individual incidents such as the ADA conflict obscure what Hotez calls “the greater reality … a much darker MAHA strategy to tear down American biomedicine.” The goal, he says, is to supplant independent academic research with “an entire system of pseudoscience and grift.” MAHA is the administration’s acronym for “Make America Healthy Again.”

The latest iteration of this effort came late last month with a rule proposal from the Office of Management and Budget, which is headed by the arch-conservative Russell Vought, that would in effect make all scientific grant applications subject to the oversight of politically-appointed commissars.

Among other provisions, grants would be rejected if they’re judged to “fund, promote, encourage, subsidize, or facilitate … diversity, equity, and inclusion” or “gender ideology” such as “theories or ideologies that deny the biological reality of sex or the sex binary in humans.”

The OMB proposal finally stirred major scientific bodies to speak up. “This latest move is a brazen power grab,” the American Association for the Advancement of Science said through its chief executive, Sudip Parikh. “If this rule becomes final, Americans’ hopes for future cures, national security and economic strength will rely on the scientific sensibilities of the nation’s chief bureaucrat.”

As it happens, the OMB proposal dropped just as the economic consequences of the extremist war on science were becoming clearer than ever.

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Among the thousands of grants and programs that perished when the administration dismantled the U.S. Agency for International Development, for example, was a program monitoring the advance of the New World screwworm north from Central America.

The screwworm, which has the capacity to devastate cattle and sheep herds, has now appeared in Texas, where its costs could be enormous. Just last year, the Dept. of Agriculture calculated that the eradication of the pest in the U.S. in the 1990s yielded annual economic benefits to producers of an inflation-adjusted $1.7 billion a year to the cattle industry and $6 billion a year to the broader economy. A new outbreak, the USDA estimated, could cost the Texas economy $1.8 billion.

Then there’s measles. The Centers for Disease Control and Prevention reports 2,030 U.S. cases this year as of June 4, almost as many as were seen in all of 2025 (when there were 2,288, including three deaths), the worst outbreak since 1991. This is the harvest of the anti-vaccine ideology being spread by Health and Human Services Secretary Robert F. Kennedy Jr.

The outbreak’s consequences can be measured in dollars and cents: Responding to an outbreak of as few as 600 cases could cost local agencies $10 million, according to healthcare researchers at Johns Hopkins University.

The Trump administration has proposed slashing the budget of the grant making National Science Foundation by 61% and of the National Institutes of Health by 40%. The budget of the CDC, which once reigned as a global gold-standard for public health oversight but has suffered from the disdain of RFK Jr. and his minions, would be cut by 44%.

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Taken together, these cuts “would shrink the economy by $1 trillion compared with maintaining the 2025 level of R&D,” reckons the Information Technology and Innovation Foundation, a science and tech think tank.

What frightens scientists more than the sheer numbers are that the cuts are arbitrary and manifestly pernicious. A study published last year in JAMA Internal Medicine identified 383 NIH-funded clinical trials that the administration terminated, leaving more than 74,000 participants high and dry.

“Scientific investment is not a cost to be minimized,” Henry Miller, a former biotech official at the Food and Drug Administration, observed recently; “it is an engine of national wealth. … The internet, mRNA vaccines, human gene therapy, GPS, the transistor — all emerged from the sustained public investment being dismantled today.”

The Diabetes Care editorial that Kahn and his colleagues attempted to distribute at the New Orleans conference is a cri de coeur targeted at the right-wing anti-science campaign. It’s titled, “Misguided Brushes of a Pen Continue to Dismantle and Destroy Biomedical Research in the United States.”

The result of the funding reductions, the authors wrote, will be “researchers being forced out of science and fewer people considering biomedical investigation as a career. Are we ready to watch the crippling of scientific advances in diabetes and all other diseases? It is no longer enough to stand idly by or work behind the scenes with lawmakers. Moreover, it is no longer appropriate to fret about political backlash.”

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The scientists intended their distribution of the article implicitly as a counterweight to a keynote talk by NIH Director Jay Bhattacharya, who was going to speak without taking questions but who bailed out at the last minute. I sought a comment from Bhattacharya, who portrays himself as a champion of open scientific debate, about the eviction of the five scientists from the conference, but got no reply.

The uproar has roiled the ADA. Its president-elect, endocrinologist Jennifer Green of Duke University, and its scientific sessions planning committee chair, diabetes expert Mark Atkinson of the University of Florida, have both resigned their positions, though their role in the evictions, if any, is unknown.

The so-called New Orleans Five demanded an apology from the association, Kahn told me. They got one Wednesday from ADA Chief Executive Charles Henderson, via a video in which he extended his apology to “the broader diabetes community,” many members of which of whom he acknowledged were “disturbed, disappointed and concerned about what occurred.”

The truth is that the ADA’s action only validated the editorial’s exhortation to scientists to speak out forcefully: “We can no longer afford complacency and fear. We must all act now!” Will other scientific bodies draw a lesson from what happened in New Orleans? Let’s hope so.

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The FBI serves a search warrant at the Garden Grove chemical plant

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The FBI serves a search warrant at the Garden Grove chemical plant

Federal Bureau of Investigation officers served a search warrant Wednesday at the Garden Grove chemical plant, where a compromised tank containing toxic chemicals threatened to leak or explode, resulting in the evacuation of nearby residents in May.

“We are cooperating with authorities at our Garden Grove facility and will continue to do so,” a spokesperson of GKN Aerospace, which operates the facility, said in an email statement.

Laura Eimiller, an FBI spokesperson, said FBI agents are serving a search warrant as part of an ongoing investigation into the Garden Grove aerospace business.

GKN Aerospace is a division of Melrose Industries, a U.K.-based aerospace company that manufactures aircraft parts.

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In May, at the manufacturing facility, which stores thousands of gallons of toxic chemicals in pressurized tanks used to produce materials such as plexiglass for fighter jet and commercial aircraft windows, one tank threatened to leak or explode.

Over 50,000 residents were temporarily evacuated as officials investigated the potential for an explosion for days. They found that a crack in the compromised tank released the pressure buildup inside the storage unit, which ruled out the possibility of an explosion, and allowed residents to return to their homes.

The compromised tank threatened to blow up, affecting adjacent tanks also containing the toxic chemical methyl methacrylate which could have caused a large-scale public safety emergency. Still, plans to remove the remaining MMA chemical tanks from the facility have been postponed, and no new date has been announced yet.

Residents who were impacted by the evacuation have already filed multiple class action lawsuits against the company, alleging negligence at the manufacturing facility and seeking compensation for loss of use of homes and diminished property value. Now, federal officials will investigate possible violations and factors that could have contributed to the incident.

According to the FBI warrant, the officers will seize items in violation of measures to prevent the accidental release of hazardous substances into the air.

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The warrant allows FBI officers the discretion to search digital devices or seize and transport them as part of the investigation.

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Rivian begins deliveries of cheaper electric vehicles

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Rivian begins deliveries of cheaper electric vehicles

Electric-vehicle maker Rivian began delivery of a cheaper SUV on Tuesday as it aims to take customers from Tesla and others.

The long-anticipated R2, which will eventually be available for less than $45,000, could help boost the market share of the Irvine company better known for vehicles priced around $77,000.

The first R2s to roll off the company’s production line in Normal, Ill., are the performance version, starting at $57,990. Rivian said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.

“Rivian is really trying to prove its worth,” said Ivan Drury, director of insights at Edmunds. “They’ve gone past that initial stage and are hoping to move on to mass market products.”

The R2 Performance is still an expensive vehicle for many Americans, but it’s a step down from Rivian’s nearly $77,000 R1S. It’s typical for an automaker to launch the most expensive version of a new vehicle first, experts said.

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Whether the R2 will be the success Rivian is hoping for won’t become clear until late 2027, once the standard versions are widely available. Chief Executive RJ Scaringe said the company is aiming to compete with not just other EV makers, but also traditional auto companies such as Jeep and Subaru.

“More mainstream people are going to be in on the R2, especially for the lower-priced models,” auto analyst Brian Moody said. “You’re always going to have early adopters, but there’s a lot more customers to go around in the $45,000 to $55,000 range.”

According to Cox Automotive, the average transaction price for a new EV in the U.S. is $55,000, compared with $49,000 for a gas-powered vehicle. Used EV sales have been surging lately because of their value, with an average transaction price of around $36,000.

Though there’s significant hype surrounding the launch of R2, investors have been unimpressed. Rivian shares fell 7% on Tuesday.

There has been a broad cooling of the EV market. Major automakers including Honda and Ford have cut back their EV options as excitement for the vehicles has fallen under the Trump administration. A $7,500 EV tax credit for new vehicles expired in September.

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Drury added that an announcement of a new product would generally generate more buzz than the first deliveries of a vehicle that’s already been in the public eye.

“This is simply them delivering on a promise, and the market itself is not what it was when they had first conjured up the vehicle,” Drury said.

Rivian lost $3.6 billion last year and hasn’t been profitable since its founding in 2009. Scaringe said the company will reach profitability on a per-unit production basis with the R2 this year, but estimated that the company won’t turn an overall profit until closer to 2030.

Karl Brauer, an auto industry expert at ISeeCars.com, said the premium and standard versions of the R2 probably will sell in much higher volumes than the performance version.

“It’s in theory an exciting moment, because they’re launching this new version, but it’s the expensive one,” Brauer said. “There’s no indication in my mind that there will be huge, high-volume sales.”

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