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
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
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.