As part of its general plan to cut costs, Nike said it will simplify its product assortment, and increase automation and technology use (Mario Tama/Getty Images).

Sportswear giant NIKE is cutting 2% of its current workforce, and is reportedly set to lay off more than 1,600 jobs as part of broader restructuring.

The Beaverton, Oregon-based company has said – various media sites have reported – that it wants to better use its capital to invest in its growth areas, such as running, women’s, and its iconic Jordan brand.

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In a memo obtained by business news television channel CNBC, Nike chief executive John Donahoe said: “This is how we will reignite our growth. This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

At the time of writing, Donahoe and his leadership team have not resigned.

Nike has said that the layoffs will take place in two phases, with the first round this week, and the second set to be completed by the end of its fiscal fourth quarter this year.

Specific departments in which this process will take place have not been revealed, but it has been reported that the layoffs will not affect retail employees at Nike’s stores or warehouse workers.

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Cuts in the Europe, Middle East, and Africa (EMEA) workforce will be on a different timeline based on local labor laws.

As part of its general plan to cut costs, Nike said it will simplify its product assortment, and increase automation and technology use.

Earlier this month reports suggested that Nike, is set to enter into a bidding war with its rials Puma and adidas for the rights to become the next official kit and equipment supplier of French soccer’s FFF governing body.

Nike is the current holder of those rights, but the contract, which has a reported value of around €50.5 million ($54.3 million) per year, expires in 2026.

Adidas has recently replaced Nike as both the partner of Saudi Arabian soccer club Al-Nassr, and as the official ball supplier of the SPL.