Nike to slash 2% of workforce as part of business reorganisation
Nike is planning to cut 2% of its global workforce, as part of its efforts to streamline operations.
The retailer also intends to get rid of 25% of its product styles.
In order to double the speed of getting the products to the market, Nike is also working on reducing product creation cycle times by half, as well as creating the new Nike Direct organisation to improve direct connections with consumers.
Led by Nike Direct president Heidi O’Neill and chief digital officer Adam Sussman, the organisation seeks to unite Nike.com, direct-to-consumer retail, and Nike+ digital products to enhance and expand Nike’s membership experience.
According to the company, these leadership and organisational changes will streamline and expedite strategic execution.
Nike brand president Trevor Edwards said: “Today we serve our athletes in a changing world: one that’s faster and more personal.
“This new structure aligns all of our teams toward our ultimate goal, to deliver innovation, at speed, through more direct connections.”
Nike also formed the Consumer Direct Offense, a new company alignment developed to offer better services to consumers.
The initiative will cover 12 key cities across ten countries, including New York, London, Beijing and Tokyo.
It is expected that these cities and countries will represent more than 80% of Nike’s projected growth through 2020.
NIKE chairman, president and CEO Mark Parker said: “Through the Consumer Direct Offense, we’re getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever.”
Already in use in North America and Western Europe, a new express lane will be available for service this year in China.
The express lane aims to quickly create, update and fulfil products in response to consumer demand.