Nike (NKE) - Get NIKE, Inc. (NKE) Report has announced job cuts and changes to its executive team amid the pandemic. While Nike hasn’t said how many jobs will be impacted, it has said the cuts will set the company back $200 million to $250 million in pre-tax employee termination costs.
Nike said the job cuts and company reorganization will help it focus on its digital business; Nike’s digital sales jumped 75% in the fiscal fourth-quarter.
“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” said Nike President and Chief Executive John Donahoe. “Now is the right time to build on NIKE’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth.”
In 2019, Nike had around 76,000 employees worldwide.
"The leadership changes, combined with a strategic alignment of NIKE’s operating model against the CDA, will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers," Nike said in a statement.
As of writing, Nike's stock was flat on Wednesday morning.
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