Oregon-based Nike has served notice of impending job cuts that it says are expected to result in pre-tax "employee termination costs" of some $200 million (£154 million/€168 million) to $250 million (£192.5 million/€210 million).
The sports footwear and apparel giant also announced a string of senior management changes, as John Donahoe, the new President and chief executive, moves to put his stamp on the organisation some six months after taking over the reins.
The announcement comes about a month after Nike revealed that it had swung heavily into loss in its March-to-May 2020 quarter, in results that it said were "significantly impacted by physical store closures" across the globe.
However, the company also said that its digital business was accelerating "in every market".
Investors had been expecting Donahoe, a former chief executive of the well-known auction site eBay, to spearhead a digital transformation of Nike even before the COVID-19 pandemic forced a root-and-branch rethink of the retail sector.
This looks to be what the latest changes are angling towards, with the sportswear company talking in terms of a "nimbler, flatter organisation", supporting its "digitally empowered" new Consumer Direct Acceleration strategy.
Donahoe said the changes would "transform Nike faster…
"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," he said.
The reorganisation sees the appointment of vice-president, general managers for the men’s, women’s and kids’ market segments, all reporting to a "President, consumer creation", Michael Spillane.
New leaders were also named in two geographic regions: Carl Grebert becomes vice-president, general manager Europe, Middle East and Africa; Sarah Mensah takes on Grebert’s old role as vice-president, general manager Asia Pacific and Latin America.
No direct indication of the number of expected job losses was given.
The company’s net loss for the three months to May 31 totalled $790 million (£642 million/€702 million), compared with net income of $989 million (£804 million/€879 million) a year earlier.
Revenues for the same period plunged by 38 per cent from $10.18 billion (£8.28 billion/€9 billion) to $6.31 billion (£5.1 billion/€5.61 billion).
The Link LonkJuly 26, 2020 at 01:57PM
https://ift.tt/2X19hfI
Nike announces shake-up of senior management - Insidethegames.biz
https://ift.tt/3g93dIW
Nike
No comments:
Post a Comment