Yesterday, Nike announced that they would be laying off two percent of their workforce, intended to focus on “extensive realignment of the business designed to streamline and speed up strategic execution,” according to SGB Media.
The layoffs affect approximately 1,400 employees, along with the initiatives introduced on Thursday that build upon the “Triple Double” program Nike introduced earlier this year. The “Triple Double” program asks Nike to increase innovation efforts, supply chain and customer relations, according to the SGB Media piece.
Along with the restructuring announcement, Nike also introduced a Consumer Direct Offense, which works towards similar goals as the “Triple Double” program.
As part of the restructuring, Nike is refocusing and simplifying their geographic focus, honing in on 12 key cities: New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Milan.
These key cities are expected to drive most of Nike’s growth in the coming years.
According to USA Today, Nike also plans to streamline and reduce product lines “by 25% and introduce more selections for the remaining lines, such as Flyknit shoes.”
You can read the full story here.
The restructuring of Nike echoes the ongoing struggles and pressures felt across retail as a whole, which sees brands and retailers alike reexamining current practices.
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