Nike Inc. an American multinational corporation, which is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, employing more than 44,000 people worldwide. The company said Thursday it will cut about 1,400 jobs as a part of restructuring, to help the sneaker giant battle slowing sales and will sell more shoes directly to customers online
The company also said that the layoffs would affect 2% of its global workforce. The Beaverton, Ore., company employed more than 70,000 around the world as of last May, including retail staff.
“This new structure aligns all of our teams toward our ultimate goal—to deliver innovation, at speed, through more direct connections,” said Trevor Edwards, President of the Nike brand unit, which includes the Jordan Brand, Action Sports and Hurley.
Nike has remarked that the changes were part of a strategy to focus on key markets, digital sales and fewer products. It remains a popular global brand and its sales continue to climb but in recent quarters, the company has reported slowing future orders for its products in its North America market.
Company has claimed that the moves will help it offer products to customers faster as it is facing increasing competition from smaller brands and premium labels. The running and basketball shoes Nike is famous for may be outdated is also a problem.
CEO Mark Parker said “We’re getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever”
By: Simran Dhingra