US: Nike restructuring poised to cost 1,400 jobs
Sportswear giant Nike confirmed to just-style today (11 February) that an ongoing restructuring of its business could lead to the loss of up to 1,400 jobs, equating to 4% of the company's global workforce.
All regions, brands and divisions are being reviewed as part of a long-term drive to cut costs, increase efficiencies and bring the Nike business closer to the consumer, the US company said.
A spokesman for Nike's EMEA (Europe, Middle East and Africa) division confirmed that up to 4% of the company's global workforce of 35,000 could lose their jobs, but said it was too soon to go into any detail.
"This is in the context of a wider restructuring we announced a couple of years ago," he told just-style.
"We are not immune to wider macro-economic factors, but this is about us streamlining our business to get closer to the consumer in our core categories."
The company said it would review its entire supply chain, reducing management layers and increasing speed-to-market, with the process likely to be complete by the end of its fiscal year in May.
"The power of the Nike brand and the diversity of the Nike portfolio continue to be a competitive strength," said Nike president and CEO Mark Parker.
"In light of the current economic climate, it is more essential than ever to sharpen our focus on the consumer to maximise opportunities for product innovation and brand management in the marketplace.
"The decision to reduce our workforce is a difficult one, but it will put our business in the strongest position possible to continue to deliver long-term profitability and growth."
Nike's most recent results showed a 9% increase in second quarter profit to US$391m, boosted by strong performances in Asia Pacific and the Americas.
Revenues were up 6% to $4.6bn, despite a 1% fall in US sales.
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