Nike to axe 1,400 jobs globally as part of new business model
Nike on Friday (June 16) introduced a new consumer-focused business and leadership structure.
These organisational changes are expected to lead to an overall reduction of approximately 2% (or 1,400) of the company’s global workforce, the sports brand said in an official statement.
With a global workforce of some 71,000 employees as of May 2016, it is unclear how many staff from Asia will be affected.
The restructure comes as sales have reportedly fallen short of internal targets amid weaker consumer spending in the brick and mortar retail sector.
The new alignment, which Nike formalised as Consumer Direct Offense, aims to better serve the consumer personally at scale, by streamlining and speeding up strategic execution.
The company will drive growth by deeply serving consumers in 12 key cities, across 10 key countries, including Shanghai, Beijing, Tokyo and Seoul.
These markets are expected to represent over 80% of Nike’s projected growth through 2020.
To improve efficiency, Nike has streamlined its geographical structure, changing from six to four main markets — North America; Europe, Middle East and Africa; Greater China; and Asia Pacific and Latin America (APLA).
Angela Dong will take on the new role of Vice President/ General Manager of Greater China, while Ann Hebert will sit in the same position for Asia Pacific.
Both will report to Elliott Hill, President of Geographies and Integrated Marketplace.
“This new structure aligns all of our teams toward our ultimate goal—to deliver innovation, at speed, through more direct connections,” said Trevor Edwards, President of the Nike Brand.