Sneaker giant Nike (NKE) says that it expects to take a pretax charge of $300 million U.S. due to severance packages paid to employees who have been let go in recent months.
The charge will mostly impact Nike’s financial results for its fiscal third quarter, according to the athletic apparel retailer.
The Beaverton, Oregon-based company said that it may take further actions to reduce its headcount in coming months, which could lead to additional charges in future quarters.
Last August, Nike announced that it would layoff about 1% of its 77,800 global staff as part of CEO Elliott Hill's turnaround plan at the company.
In January of this year, Nike cut 775 jobs in the U.S. to accelerate its supply chain automation. And in February, the company said its Converse brand would start cutting corporate roles.
Nike is scheduled to report its fiscal third-quarter earnings results on March 31.
NKE stock has declined 25% over the past 12 months to trade at $58.02 U.S. per share.
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