Nike is revealing more about upcoming layoffs as it shuffles tops management and closes two daycare centers on campus.
In a WARN notice filed with the state of Oregon yesterday, the company said it would permanently reduce its workforce by 500 employees at its Beaverton, Ore. headquarters. The layoffs will begin Oct. 1, with additional separations expected after that date.
Nike said in the filing that the moves involve some members of Nike’s corporate team and their executive assistants. In addition, 192 employees who work at the company’s two childcare centers will be impacted by the moves as Nike shutters the locations.
“We are shifting our childcare strategy and launching a new benefit available to a greater number of teammates – not only at world headquarters, but also across the U.S.,” Nike said in a statement. “We are expanding our childcare benefit from hundreds to thousands of employees, including, for the first time, our teammates in retail, distribution centers and air manufacturing innovation. This shift means we made the difficult decision to close the Nike Child Development centers and say goodbye to our faculty and staff.”
Last week, the company revealed a series of management changes and revealed planned job cuts across the workforce.
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“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” CEO John Donahoe said in a statement. “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 its fourth-quarter conference call last month, Nike said it’s forging ahead with the Consumer Direct Acceleration phase as part of its Consumer Direct Offense alignment, which was unveiled three years ago.
With the strategy, Nike intends to accelerate investments in e-commerce and technology, as well as simplify the men’s, women’s and kids’ businesses. It also plans to open up to 200 new smaller-format, digitally enabled stores across North America and Europe-Middle East-Africa countries.
Nike this week also made a notable change in its diversity and inclusion leadership.
Kellie Leonard, the firm’s chief diversity and inclusion officer for the past two years, has exited. Felicia Mayo, who joined Nike a year ago from Tesla, will lead a newly formed team as chief talent, diversity and culture officer.