Nike announced today that it will cut 2% of its global workforce as it "restructures to more quickly get products in the hands of consumers and respond to a rapidly changing consumer landscape," according to Matthew Kish of the PORTLAND BUSINESS JOURNAL. Nike is "adapting to a consumer shift to online shopping." It is also "battling increased competition from a resurgent Adidas." Nike reported 70,700 global workers on its "last annual report." A 2% reduction would "amount to about 1,400 layoffs." The strategic shifts include the "creation of a Consumer Direct Offense, which will focus on getting personalized products to market." Nike's new strategy includes "focusing on" 12 key cities: N.Y. , London, Shanghai, Beijing, L.A., Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Milan. The cities and their respective countries are expected to account for 80% of Nike's growth through '20 (BIZJOURNALS.com, 6/15). BLOOMBERG NEWS' Nick Turner notes Nike is also "simplifying its regional organization." It plans to "concentrate on four regions -- North America; greater China; Europe, Middle East and Africa; and Asia Pacific and Latin America -- down from six." Its Consumer Direct Offense will be headed up by Nike Brand President Trevor Edwards (BLOOMBERG NEWS, 6/15). Nike said that it would "reduce the number of its shoe styles by a quarter, focusing on key brands such as ZoomX, Air VaporMax and Nike React" (NYTIMES.com, 6/15).
