Nike announced that the company plans to cut approximately 1,400 jobs as part of a plan to revamp their e-commerce and retail sector.
On Thursday, the company announced a new initiative to expand their direct selling to consumers and developing their e-commerce platform. As a result, two percent of their global workforce will be cut to implement a “Consumer Direct offense.” The new reorganization project will target customers in 12 different cities. These cities include New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan as these cities are expected to account for more than 80% of the company’s growth through 2020.
“In the new alignment, the company will drive growth by deeply serving consumers in 12 key cities,” the company said in a statement. “Nike is moving closer to the consumer — creating a local business, on a global scale.”
The company is restructuring their global business so the firm can focus on building a digital and merchandising platform that is more responsive to the previously mentioned markets.
Nike is also changing the product cycle times of they apparel in half and investing in new categories that are expected to have the greatest growth potential such as, running, baseball and young athletes.
This news comes after retail stores are closing hundreds of stores due to pressure from Amazon and other e-commerce giants.
“Today we serve our athletes in a changing world: one that’s faster and more personal,” said Trevor Edwards, president of the Nike Brand.
“This new structure aligns all of our teams toward our ultimate goal — to deliver innovation, at speed, through more direct connections.”