Nike layoffs: Swoosh felt 'round the world

On Thursday, Nike, the world's largest athletic shoe and sportswear manufacturer, announced plans to cut 1,750 jobs, or five percent of its workforce. Following the news, the company's stock rose nearly three percent, to close at $50.95.

In February, Nike planned to cut 1,400 jobs, or four percent of its workforce, in an effort to reorganize and streamline its global supply. The decision to increase cuts came in reaction to a four percent drop in sales in the most recent quarter. While the company has fared better than most of its competitors, its stock value has dropped by 25 percent over the last year, as high-priced athletic shoes have emerged as a luxury purchase that can definitely be delayed in the middle of a recession.