This decision is part of the extensive “Win Now” recovery strategy, which is intended to help the company regain its former dynamics and cope with declining sales results.
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As reported by the company, approximately 1.4 thousand will lose their jobs. people all over the world.
Technology in the spotlight
The biggest cuts will affect the technology department. In an official note, the company's COO, Venkatesh Alagirisamy, explained that the layoffs are necessary to rebuild the IT team, modernize Air systems production and integrate material supply chains with the footwear and apparel teams. Some of the changes also apply to the Converse brand.
— These changes will lead to a reduction of approximately 1.4 thousand. roles in global operations, most of them in technology — wrote Alagirisamy, admitting that these decisions are “very difficult for the colleagues directly affected.”
A Nike spokesman clarified that the cuts cover employees from North America, Asia and Europe, which is less than that 2 percent total number of employees in the concern.
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Not a revolution, but the next stage
This is not the first such step recently for Nike. Under the leadership of CEO Elliott Hill, the company has been trying to recover from the crisis for months.
In January, 775 people lost their jobsmainly in distribution centers in the USA, which was explained by accelerated automation. On the other hand There was another round of layoffs last summer, accounting for about 1%. corporate staff.
The management board emphasizes that the current layoffs are not a “new direction”, but another phase of the ongoing process of adapting the company to the pace of modern sports and accelerating growth.
Difficult market and regression in China
The restructuring coincides with less than optimistic financial forecasts. In its fiscal third-quarter report, Nike warned investors that sales would continue to decline through the end of the year.
The biggest problem remains the Chinese market, where sales are expected to decline by as much as 20% in the current quarter. In the face of weakening demand in the Middle Kingdom, Elliott Hill is forced to look for savings and increase operational efficiency, which means uncertainty and further terminations for employees. People affected by the reduction will be informed about the company's decisions starting on Thursday.
