Nike announced Wednesday a major reorganization at the head of the company, as well as job cuts, in order to accelerate its evolution towards selling online.
July 22, 2020 18h32
Major reorganization for Nike
NEW YORK — The automotive supplier american Nike announced Wednesday a major reorganization at the head of the company, as well as job cuts, in order to accelerate its evolution towards selling online at the time where the pandemic has changed the habits of consumers.
The company has not specified the number of planned layoffs, saying only in a press release want to put aside 200 to $ 250 million to cover start-up costs of the employees concerned. According to its latest annual report, Nike employs about 76 700 people in the world and manages 1152 stores.
Between march and April, when a large part of these stores have had to close their doors due to the spread of the COVID-19, Nike has been able to offset some of the lost sales in the facilities by the surge in online sales.
The latter have jumped by 75% compared to the same period in 2019, and represented about a third of turnover.
To capitalize on this momentum, the group has set up a strategy to bring in customers who want to purchase shoes and sports clothing on the Internet, “an improved experience, seamless and without a hitch” both on the website of the brand with its strategic partners.
The changes announced Wednesday are intended “to transform Nike more quickly, to accelerate our biggest growth opportunities and extend our leadership position,” commented the director general of the mark to the comma, John Donahoe in the press release.
“It is the right time to take advantage of the strengths of Nike and promote a group of responsible, experienced and talented individuals that can take the next growth phase” of the group, he added.
These appointments are accompanied by a sequence of operations of the company around the new strategy through an organization “more nimble and with less levels”.