Nike to lay off 1% of its corporate workforce
What's the story
Nike has announced plans to lay off less than 1% of its corporate workforce. The decision is part of a broader strategy to turn around the company's business under CEO Elliott Hill. As of May 31, Nike employed some 77,800 people globally, including retail and part-time workers. The layoffs won't affect Nike's EMEA and Converse businesses.
Strategic changes
Nike's focus under Hill's leadership
Under Hill's leadership, Nike has focused on its running shoe and sneaker lines to regain market share. The company is also working on strengthening ties with retailers and increasing its physical store presence. This is all part of a larger plan to combat market competition. In June, Hill had said the company would "realign" into cross-functional teams by sport.
Consumer connection
Putting sport back at the center
Nike's new formation is aimed at putting sport and sport culture back at the center. The company hopes this will help it connect more deeply with athletes and consumers. "This new formation is built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer," Nike said in a recent statement.
Past actions
Previous job cuts and production shifts
In February last year, Nike announced a 2% job cut, which affected over 1,600 employees. The move was aimed at cutting costs amid demand pressures. In June, the company also said it would reduce its dependence on China for US market production to lessen the impact of import tariffs. This came after a smaller-than-expected drop in first-quarter revenue.