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

Former Men's Wearhouse CEO prepares new enterprise

It seems former Men's Wearhouse CEO George Zimmer may be about to show his trump card following his fall-out with the apparel retailer, through the launch of a new company....

BLOG

Tesco chairman successor list "drawn up"

As UK retail giant Tesco continues to fight its way through the fallout from its recent accounting crisis, it seems a board member has begun compiling a list of candidates to succeed chairman Sir Rich...

BLOG

Gap CEO switch a sign of transition

If evidence is needed as to the new direction likely to be pursued by US retail giant Gap Inc, look no further than the company's new leadership change. It was revealed last week that CEO Glenn Murphy...

BLOG

just-style readership survey

We've just launched our first readership survey in two years - and want to know what you think about just-style, and the challenges you're facing at the moment....

just-style homepage



Forgot your password?