Nike plans job cuts
26 Jun 2020
Earlier today, FashionUnited reported that Nike suffered a 790 million dollar loss for Q4. Now, in order to help their balance sheet, Nike is planning job cuts as they are planning to shift their model to be more direct-to-consumer through their online and retail channels.
The 790 million dollar loss was Nike's first loss in 2 years. The shutdowns over the global coronavirus pandemic really put a dent in Nike's profitability. Nike is aiming for their digital footprint to account for 50 percent of sales, up from 30 percent.
Even with ramping up e-commerce, brick-and-mortar still proves to be a necessary component to stores' business. Earlier this year, Nike brought in John Donohoe as the company's CEO to help bolster their e-commerce footprint. Donohoe was the former CEO of ServiceNow and comes with a resume hefty in e-commerce experience having also worked as an executive at eBay.
The expected layoffs are not expected to impact warehouse, distribution center, or retail store employees. The first wave of layoffs are expected to come in July, followed by a second wave in fall. Currently, Nike has 76,000 employees according to an SEC filing.
photo: via Nike Press Room