Nike Inc. said Thursday that it expects to cut 2 per cent of its global workforce, or about 1,400 workers, as a result of a corporate restructuring.
Nike has 70,700 employees according to FactSet. Called the “Customer Direct Offense,” the new corporate structure will focus on 12 cities across 10 countries, including New York London, Tokyo and Barcelona, which is expected to represent 80 per cent of the company’s growth through 2020.
The company is cutting 25 per cent – one quarter – of its sneaker styles, and is cutting product creation cycles in half.
The company also said it would focus on newer styles, such as ZoomX, Air VaporMax and NikeReact, and on categories with high growth potential, including running, basketball and soccer.
Nike said it would reduce the number of its business segments to four from six as part of the initiative.