NIKE TO GO IN FOR COR­PO­RATE RE­STRUC­TUR­ING, SLASH 1400 JOBS, LESSEN SNEAKER STYLES

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Nike Inc. said in a me­dia state­ment that it ex­pects to cut 2 per cent of its global work­force, or about 1,400 work­ers, as a re­sult of a cor­po­rate re­struc­tur­ing. Nike has 70,700 em­ploy­ees ac­cord­ing to Fac­tset. Called the “Cus­tomer Di­rect Of­fense,” the new cor­po­rate struc­ture will fo­cus on 12 cities across 10 coun­tries, in­clud­ing New York Lon­don, Tokyo and Barcelona, which is ex­pected to rep­re­sent 80 per­cent of the com­pany’s growth through 2020. The com­pany is cut­ting 25 per­cent – one quar­ter – of its sneaker styles, and is cut­ting prod­uct cre­ation cy­cles in half.

The com­pany also said it would fo­cus on newer styles, such as Zoomx, Air Va­por­max and Nik­ere­act, and on cat­e­gories with high growth po­ten­tial, in­clud­ing run­ning, bas­ket­ball and soc­cer. Nike said it would re­duce the num­ber of its busi­ness seg­ments to four from six as part of the ini­tia­tive. The Ore­gonbased sports­wear maker has been fac­ing in­creas­ing pres­sure from ri­vals Un­der Ar­mour and Adi­das.

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