Nike makes changes to leadership, $200m in termination costs
Following last month’s announcements of a new digitally-focused strategy, called Consumer Direct Acceleration (CDA), Nike has made a series of leadership changes hoped to create “greater focus and agility” within a “nimbler, flatter” organisation.
The operational model changes being made to align with CDA are predicted to lead to job losses across the company, with a one-time employee termination cost of approximately $200 million to $250 million.
In the brand’s geographic operating segments, new leaders have been appointed in Europe, Middle East and Africa (EMEA) and in Asia Pacific and Latin America (APLA). Carl Grebert will be VP/GM, EMEA, succeeding Bert Hoyt, who will retire later this year after 22 years with the company. Sarah Mensah will succeed Grebert to become VP/GM, APLA. Ann Hebert and Angela Dong will remain the VP/GMs, North America and Greater China geographies, respectively.
Craig A. Williams, president of Jordan Brand, and G. Scott Uzzell, president and CEO of Converse, are joining Nike’s executive leadership team.
Nike also said the company is shifting to a “new, simpler consumer construct” of men’s, women’s and kids products that will be more specialised through performance sport and sport lifestyle. Accompanying this shift, Amy Montagne will be VP/GM of men’s; Whitney Malkiel will be VP/GM for women’s; and McCallester Dowers will be VP/GM for kids.
“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” said John Donahoe, president and CEO of Nike. “Now is the right time to build on Nike’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth.”
