Converse to cut jobs as part of Nike's cost-savings plan

(Reuters) -Footwear brand Converse will cut jobs as part of parent company Nike's on-going $2 billion cost savings plan, a source familiar with the matter said on Tuesday.

Nike had laid out a costs saving plan in December that would stretch over the next three years and also include tightening the supply of some products and reducing management layers.

The footwear giant has been hit by cautious consumer spending and a pressured wholesale business over the past few quarters, forcing it to trim supplies of classic shoes such as its Air Force 1 and Pegasus.

In March, it warned its revenue in the first half of fiscal 2025 would shrink by a low single-digit percentage.

The cost-saving plan has prompted a slew of job cuts over the past few months at the world's largest sportswear maker.

Nike said it would lay off about 740 employees at its world headquarters in Oregon as part of the restructuring plan in April.

In February, it announced plans to reduce about 2% of its total workforce, that impacted more than 1,600 jobs.

Bloomberg News had first reported on the job cuts at Converse.

(Reporting by Juveria Tabassum, additional reporting by Savyata Mishra and Ananya Mariam Rajesh; Editing by Krishna Chandra Eluri)