UPDATE 2-Nike slashes 5 pct of global jobs in largest cut
* 500 jobs will come from HQ in Oregon
* Shares steady after hours (Adds details on global overhaul, analyst comment, byline; previous LOS ANGELES)
SAN FRANCISCO, May 14 (Reuters) - Nike Inc (NKE.N), the world's largest maker of athletic shoes and apparel, will slash 5 percent of its 35,000-strong global workforce, or 1,750 jobs, in the largest headcount reduction in the company's history.
The sweeping overhaul to boost competitiveness and clamp down on costs for the owner of the famous "swoosh" logo will include about 500 positions at Nike's Beaverton, Oregon, headquarters, the company said on Thursday.
Nike employs more than 3,000 workers at its headquarters.
The sports-gear brand first said in February that a review of its sprawling worldwide operations would likely result in a 4 percent staff reduction, or about 1,400 jobs.[ID:nN10324409]
Nike has already choked off production at factories in China and Vietnam, trimmed marketing spending, and reorganized its global business into six geographical groups, making China its own region.
While trying to weather a downturn in consumer spending by streamlining its global supply chain and flattening management, Nike has remained relatively resilient during the slump.
Still, shares have lost nearly a quarter of their value in the last year.
The company has banked on the cachet associated with its brand and a diversified portfolio to help it stay on course even as rivals Adidas (ADSG.DE) and Puma (PUMG.DE) have stumbled.
"We recognize the allure of Nike's best of breed status, robust cash flow ... and U.S. share gains, but believe there are meaningful headwinds that will pressure sales, margins and earnings," Sterne Agee analysts said in a May 12 report.
The company's sales declined in its most recent quarter, especially in Europe. Quarterly margins are also under pressure, but the company's selling, general and administrative costs fell nearly 4 percent in its most recent third quarter. [ID:nN24503965] [ID:nN18378512]
Nike said it hoped to complete most of the layoffs over the coming weeks.
The company's shares held steady in after-hours trading.
"Our new structure sharpens our consumer focus globally to drive continued growth," CEO and President Mark Parker said in a statement. "The decision to reduce our workforce has been a difficult and challenging one. Continued...
Delayed spacewalk ends successfully.