Blog: Leonie BarrieNike's ongoing restructuring

Leonie Barrie | 11 February 2009

Nike is keen to stress that a cull of up to 1,400 jobs is part of a wider restructuring announced a couple of years ago rather than a symptom of the current economic climate.

The realignment will “bring the company closer to consumers, reduce management layers and leverage efficiencies to increase speed-to-market advantages globally,” the company said. And it will include a review of the sportswear giant’s entire supply chain from the sourcing base to the retail footprint.

Although Nike has largely been shielded from the economic slowdown – in December it recorded a 9% increase in second quarter profit to US$391m, boosted by strong performances in Asia Pacific and the Americas – US demand is slowing and profits have been hurt by the strong dollar.

But it is pinning its future growth on a focus on six core categories: running, basketball, football (soccer), women’s fitness, men’s training and sport culture. These areas alone are expected to generate about 75% of the Nike brand’s growth by 2011.

US: Nike restructuring poised to cost 1,400 jobs


BLOG

Zara under fire over "Holocaust" t-shirt

Inditex-owned fast fashion chain Zara has gone and done it again....

BLOG

Cambodia garment industry approaching crossroads

If Cambodia's US$5.5bn garment industry is not yet at a crossroads, it is approaching one, according to participants at an industry trade show held in Phnom Penh. Many industry suppliers believe that ...

BLOG

Apparel industry reacts to Russia tensions

Retail shares have been among the biggest fallers in the last two weeks as financial markets react to President Vladimir Putin's retaliation to the imposition of sanctions on Russia....

BLOG

Spotlight switches to African fashion designers

With the spotlight already shining brightly on African textile and apparel production and its future potential, it is perhaps not surprising that there's also an increasing focus on African fashion as...

just-style homepage



Forgot your password?