Nike announces job cuts and leadership changes to focus on its e-commerce business
 

Nike has been holding its own all through the pandemic, making it one of the brands that carried on with unwavering commitment.

But the sportswear giant recently announced multiple changes in leadership and job cuts that have no direct correlation with the COVID-19 situation. Instead, they say the overhauling is an effort to focus on its digital business and sell to customers more directly as the pandemic has changed buying patterns.

The company currently has a workforce of over 76,000 employees and the job cuts are set to cost them roughly US $ 200-250 million in pretax, one-time employee termination costs.

Although Nike didn’t announce the number of people it would be letting go, they had revealed their shift in strategy to focus on Consumer Direct Acceleration in June.

Nike reported a net loss for the fourth quarter and sales were down 38 per cent but the move comes after Nike’s e-commerce sales surged 75 per cent even after overall sales were down due to lockdowns.

“Now is the right time to build on Nike’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth,” said John Donahoe, Nike President and Chief Executive Officer, explaining why the company made major changes to the executive staff.

 

 

 

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