Nike To Cut 2% Of Its Workforce As Part Of Corporate Restructuring

Nike Inc. said Thursday that it expects to cut 2% of its global workforce, or about 1,400 workers, as a result of a corporate restructuring. Nike has 70,700 employees according to FactSet. Called the "Customer Direct Offense," the new corporate structure will focus on 12 cities across 10 countries, including New York London, Tokyo and Barcelona, which is expected to represent 80% of the company's growth through 2020. The company will report based on four operating segments - North America; Europe, Mideast and Africa (EMEA); Greater China; and Asia-Pacific and Latin America (APLA). Each region has a vice president to lead it. The company is cutting 25% of its styles, and is cutting product creation cycles in half. Michael Spillane has been named to a new role, president of categories and products, to head this speedier process. The company is also increasing its direct-to-consumer efforts through a new Nike Direct organization led by Heidi O'Neill, president of the group, and Adam Sussman, chief digital officer. Nike shares are down 2.6% in Thursday trading and up 4.7% for the year so far. The S&P 500 index is up 8.3% for 2017 to date.