Citing the current economic environment, as well as a desire to increase speed-to-market, athletic giant Nike Inc. said Tuesday it would restructure its business and possibly eliminate more than 1,000 positions.
The Beaverton, Ore.-based company stated in a release it would review its entire supply chain to “bring the company closer to consumers, reduce management layers and leverage efficiencies to increase speed-to-market advantages globally.” According to the release, the realignment could result in an overall reduction of as much as 4 percent of the company’s worldwide workforce. Nike said it employs almost 35,000 people globally.
“In light of the current economic climate, it is more essential than ever to sharpen our focus on the consumer to maximize opportunities for product innovation and brand management in the marketplace,” President and CEO Mark Parker said in a statement. “The decision to reduce our workforce is a difficult one, but it will put our business in the strongest position possible to continue to deliver long-term profitability and growth.”
According to the company, it expects to complete its review — which will include the number, timing and locations of positions to be eliminated — by the end of the fiscal year. Nike is expected to report its fourth-quarter earnings in June.