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


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...


Hanjin Shipping collapse triggers fear of West Coast port repeat

The recent bankruptcy of South Korea's Hanjin Shipping, the world's seventh-largest container shipper, at the end of August, has left billions of dollars worth of merchandise in limbo, leaving the fal...

just-style homepage

Forgot your password?