Nike reported Thursday that he plans to cut less than 1% of his corporate workforce as part of the sportswear brand plans to recover his business under the direction of CEO Elliott Hill.
Under Hill, the company has been investing in its running lines and sports shoes to recover lost ground in those segments, while reviving relationships with retailers and expands its presence in physical stores in order to face competition in the market.
As of May 31, Nike had approximately 77,800 employees worldwide, including store workers and part -time employees.
The measure follows Hill’s comments in June, when he declared that the company planned to “reorganize” in multifunctional teams for sport.
“This new formation is designed to put sports and sports culture again in the center, and to connect more deeply with the athlete and consumer,” said the company in a statement on Thursday.
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The cuts will not affect Nike’s businesses in EMEA or Converse, and it is not yet clear how many positions will be impacted, CNBC reported earlier in the day.
Nike had previously announced a job cut of 2 % in February last year, equivalent to more than 1,600 positions, to reduce expenses to demand pressure.
The company indicated in June that it would reduce its dependence on production in China for the US market, in order to mitigate the impact of import tariffs, after providing a drop in the income of the first quarter less than expected.
With Reuters information
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