US sportswear giant Nike has confirmed another wave of layoffs. This is part of the ongoing “Win Now” turnaround strategy.
The company confirmed to Footwear News (FN) that approximately 1,400 operational positions have been eliminated in North America, Europe and Asia. This represents less than two percent of Nike’s global workforce.
The “significant changes” are taking place worldwide and are primarily focused on streamlining certain team structures. It was pointed out that the affected employees will be informed directly by their superiors and the human resources department from April 23rd.
Second job cuts in a row
The brand’s technology department will also be affected by the cuts as it moves to a more speed-focused structure. The future focus will be on two centers: the Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center.
At its subsidiary brand Converse, Nike also plans to relocate some of the shoe brand’s production and development resources closer to its factory partners. The materials supply chain will fall under the umbrella of Nike’s own footwear and apparel teams, according to FN.
A memo obtained by the media company and issued by Chief Operating Officer (COO) Venkatesh Alagirisamy said the layoffs were part of “targeted steps to strengthen” the company’s fundamentals. The aim is to create a simplified business model that is designed for long-term profitable growth.
Alagirisamy continued: “In the coming months, we will continue to evolve global operations to serve athletes and the business with greater speed, simplicity and precision. Some of this work is happening now and will continue over time as we align our teams, capabilities and footprint to meet the company’s future needs.”
This latest round of layoffs follows previous job cuts in January that affected 775 positions at Nike’s U.S. distribution centers. At Converse, meanwhile, a separate restructuring process initiated in February also led to job cuts. Exact details were not disclosed.
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