Nike to cut global workforce by 2%
16/06/2017
It has explained that it will “leverage the power of digital” to drive growth by accelerating innovation and product creation, and building closer relationships with consumers in key areas.
Trevor Edwards, president of the Nike brand, will lead this strategy, which Nike calls the ‘Consumer Direct Offense’.
To improve its efficiency, Nike will simplify its geographic structure to just four regions: North America; Europe, Middle East and Africa (EMEA); Greater China; and Asia Pacific and Latin America (APLA). Nike has named a dedicated general manager for each region and its financial results will be reported based on these four segments from the 2018 fiscal year.
The company wants to double its innovation. It said it will do this by “accelerating the impact and cadence of new innovation platforms”. To this end, there will be a 25% reduction in the styles it sells. It also aims to cut product creation cycles in half to allow it to respond to consumer demands more quickly.
The company revealed that this streamlining of operations will result in “an overall reduction of approximately 2%” of its global workforce. Based in Nike’s most recent figures for employee numbers, this would mean around 1,400 job losses.
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