Nike may cut up to 4 percent of work force
BEAVERTON, Ore. (AP) - Shoe and apparel company Nike, Inc. says it may cut up to 1,400 jobs as part of a restructuring.
The company said Tuesday that it is realigning its business and as part of that, could cut up to 4 percent of its work force. Nike employs nearly 35,000 people worldwide.
The Beaverton company reorganized its brands two years ago to increase sales and says this decision is the next step in that strategy.
Nike says the exact number, timing and location of the positions to be eliminated will not be known until a review of its entire business is complete at the end of the fiscal year.
The following is a press release issued by Nike on the restructuring:
BEAVERTON, Ore. (Feb 10, 2009) NIKE, Inc. (NYSE:NKE) today announced the next stage of its category business model execution, which includes the restructuring of its business to further enhance its consumer focus and drive innovation more quickly to market. This realignment will drive greater efficiencies throughout the organization and may result in an overall reduction of up to four percent of the company¹s workforce. NIKE, Inc. employs nearly 35,000 people worldwide.
Two years ago NIKE, Inc. undertook a realignment of the Nike brand to organize along key global sport categories. Today¹s announcement is an evolution of that strategy and would bring the company closer to consumers, reduce management layers and leverage efficiencies to increase speed-to-market advantages globally. As part of this effort, the company will review its entire supply chain from the sourcing base to the retail footprint to ensure it is in the best position to bring elevated consumer experiences to market.
³The power of the Nike brand and the diversity of the Nike portfolio continue to be a competitive strength, ³said Mark Parker, President and CEO of NIKE, Inc. ³In light of the current economic climate, it is more essential than ever to sharpen our focus on the consumer to maximize opportunities for product innovation and brand management in the marketplace. The decision to reduce our workforce is a difficult one, but it will put our business in the strongest position possible to continue to deliver long-term profitability and growth.²
The Company anticipates completing its review of its organization by the end of the current fiscal year. The exact number, timing and location of positions expected to be eliminated will not be known until the review is completed and employee representative bodies have been consulted within accordance with local legal requirements.
The company said Tuesday that it is realigning its business and as part of that, could cut up to 4 percent of its work force. Nike employs nearly 35,000 people worldwide.
The Beaverton company reorganized its brands two years ago to increase sales and says this decision is the next step in that strategy.
Nike says the exact number, timing and location of the positions to be eliminated will not be known until a review of its entire business is complete at the end of the fiscal year.
The following is a press release issued by Nike on the restructuring:
BEAVERTON, Ore. (Feb 10, 2009) NIKE, Inc. (NYSE:NKE) today announced the next stage of its category business model execution, which includes the restructuring of its business to further enhance its consumer focus and drive innovation more quickly to market. This realignment will drive greater efficiencies throughout the organization and may result in an overall reduction of up to four percent of the company¹s workforce. NIKE, Inc. employs nearly 35,000 people worldwide.
Two years ago NIKE, Inc. undertook a realignment of the Nike brand to organize along key global sport categories. Today¹s announcement is an evolution of that strategy and would bring the company closer to consumers, reduce management layers and leverage efficiencies to increase speed-to-market advantages globally. As part of this effort, the company will review its entire supply chain from the sourcing base to the retail footprint to ensure it is in the best position to bring elevated consumer experiences to market.
³The power of the Nike brand and the diversity of the Nike portfolio continue to be a competitive strength, ³said Mark Parker, President and CEO of NIKE, Inc. ³In light of the current economic climate, it is more essential than ever to sharpen our focus on the consumer to maximize opportunities for product innovation and brand management in the marketplace. The decision to reduce our workforce is a difficult one, but it will put our business in the strongest position possible to continue to deliver long-term profitability and growth.²
The Company anticipates completing its review of its organization by the end of the current fiscal year. The exact number, timing and location of positions expected to be eliminated will not be known until the review is completed and employee representative bodies have been consulted within accordance with local legal requirements.