Layoffs to Affect Less Than 1% of Staff
Returning to a Sports-Centered Culture
CNBC, a leading U.S. business media outlet, reported on August 28 (local time) that Nike, the world’s largest sports brand, is set to implement additional layoffs.
CNBC stated that the exact scale of the layoffs remains unclear, but less than 1% of employees are expected to be affected. It added that the Europe, Middle East, and Africa (EMEA) division and its subsidiary Converse are not expected to be impacted.
In a statement sent to CNBC, Nike said, "As we disclosed during our fourth-quarter earnings announcement, the company is currently undergoing a restructuring process," explaining, "These measures are aimed at refocusing on sports and sports culture, forging deeper connections with athletes and consumers, and securing the space to create what only Nike can offer." Previously, in February last year, Nike had also announced plans to lay off more than 1,500 employees, accounting for 2% of its total workforce.
Elliott Hill, who has worked at Nike for over 30 years, began his tenure as CEO in October last year and initiated efforts to address sluggish performance and enhance the brand’s image. Under former CEO John Donahoe, Nike shifted its business segmentation from sports categories to men’s, women’s, and children’s divisions in an effort to expand its lifestyle business. However, some critics argued that this change led to a weakening of the company’s innovation drive.
CEO Hill is now steering the company back toward a focus on sports and sports culture. During the fourth-quarter earnings announcement in June, he stated, "Instead of dividing by men’s, women’s, and children’s categories, the Nike, Jordan, and Converse teams will come to work each day with the mission of creating the most innovative and compelling products for the specific athletes they each support."
He also emphasized that he would form teams obsessed with sports to generate a continuous flow of innovative products across all three brands. CEO Hill expressed optimism, saying, "From here, we expect to see improvements in business performance."
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