Nike warns of job cuts as it accelerates digital strategy

Worldwide
Published:  30 June, 2020

The global sportwear manufacturer could cut hundreds of jobs to reinvest resources in “priorities”.

The announcement comes after Nike posted revenues of US$6.3 billion (-38%) for the fourth quarter of its fiscal 2020 and a net loss in the quarter of US$790 million. Read more here. According to John Donahoe, CEO, Nike Inc, the company now aims to boost its digital sales to account for 50% of its overall business, up from the 30% recorded in the reported quarter. “Our vision is to create a clear and connected digital marketplace. So, we’re accelerating our approach”, said Donahoe, who joined Nike earlier this year after serving ServiceNow as CEO and eBay as an Executive. Allegedly, the company does not yet know how many jobs will be reduced, nor who will be specifically impacted. “We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs”, said Nike.

Source: FoxBusiness