Reportedly, NIKE, Inc. (NIKE) is gearing up for some leadership changes along with job cuts to focus on its digital business and engaging directly with customers as COVID-19 impacts the buying habits of consumers. The company informed that the changes it is making will lead to a “net loss of jobs across the company,” resulting in one-time employee termination costing $200 million to $250 million approximately.
Some of the leadership changes include Amy Montagne, as vice president of its men’s business, former head of its global categories, It named Whitney Malkiel, as head of its women’s business, Its former head of Nike’s North American kids business, McCallester Dowers has now been appointed as head of kids globally, and Michael Spillane as head of a new consumer creation division.
“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” Nike President and Chief Executive Officer 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.”
Nike reported an unexpected fiscal fourth-quarter net loss and a sales decline of 38% year over year, however, its digital sales soared 75% contributing 30% of total revenue. Donahoe stressed during the earnings release on how the retailer was focusing to streamline the digital front of its business, to recover from the COVID-19 impact. The number of job cuts was not disclosed, but Nike insisted that the move is meant to invest resources in stronger parts of the business. As per its annual report, Nike had approximately 76,700 employees worldwide as of May 31, 2019.
NIKE, Inc. (NIKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.