Nike to cut 1400 jobs
Nike Inc, the world’s largest athletic shoe and clothing maker, warned on Tuesday that up to 4 per cent of its workforce could be cut amid an ongoing business review aimed at bringing products more quickly to market while reducing expenses.
Up to 1,400 jobs out of about 35,000 globally could be cut and Nike said the goal of the comprehensive review was to run a leaner organization and reduce layers at the global giant.
Nike said it would not know the exact number of jobs that would be eliminated, nor the timing and location of the cuts, until it completes its review by the end of the current fiscal year, which ends May 31.
Although Nike has seen its major retail customers in the United States struggle, the company’s diversified product – and brand cachet – has largely shielded it from the economic downturn.
In its most recent third quarter, the company posted a 9 per cent rise in net profit and a 6 per cent sales gain, with increases in all regions except the United States.
The brand’s momentum in China, Nike’s second-largest market, was fueled by the Olympics last summer, and emerging markets have also seen robust growth, counteracting softness in the company’s mature markets.
Nike has said that its flexible supply chain allows it to consolidate material sourcing and production and drive cost savings with its vendors.
