Blog: Nike'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.
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- Nike reaffirms US production commitment
- M&S to launch supply chain human rights policy
- Levi Strauss raises the bar on sustainability
- Gap and H&M back Myanmar path to labour reform
- VF pushes ahead on chemicals management
- Myanmar minimum wage set at US$3.2 per day
- Far Eastern to invest $323m in Vietnam textile hub
- China cotton stockpile auction may shake up market
- Over 8,000 children in Delhi garment industry
- US retail landscape "mediocre" over next 5 years