Nike announces job cuts as part of digital transformation strategy

Global sports clothing and equipment brand Nike has announced a restructuring of its senior team as part of a continuing digital drive at the business.

Job cuts will be made in line with the changes, resulting in expected pre-tax redundancy costs of approximately $200 million to $250 million. The company did not say exactly how many jobs would be lost.

The changes centre on Nike’s recently announced ‘Consumer Direct Acceleration’ (CDA) strategy which is intended to drive its digital transformation and evolution towards a more direct-to-consumer structure. It’s a movement that has been in traction for some time, but the latest iteration sees the appointment of several new vice president (VP)/general manager (GM) roles.

Amy Montagne becomes VP/GM for the men’s division, while Whitney Malkiel takes on the same role for Nike’s women’s business. McCallester Dowers will assume the VP/GM job title for the kids division, and all three will report to Michael Spillane, who becomes president for consumer creation.

Nike has also announced new leaders in Europe, Middle East and Africa (EMEA), and in Asia Pacific and Latin America (APLA). Carl Grebert becomes VP/GM in EMEA, succeeding Bert Hoyt, while Sarah Mensah succeeds Grebert to become VP/GM in APLA.

Ann Hebert and Angela Dong will remain the VP/GMs in North America and Greater China, respectively, and all of these regional leaders report to Heidi O’Neill, who is president for consumer and marketplace at the brand.

Craig Williams, president of the Jordan brand, and G. Scott Uzzell, president & CEO of Converse, will join Nike’s executive leadership team reporting into group CEO, John Donahoe.

Nike said the changes will make the company a ”nimbler, flatter organisation”.

Nike’s fourth quarter sales, announced in June, revealed it had been “significantly impacted” by the forced store closures around the world because of the coronavirus.

Revenue for the three months to 31 May was down by 38% year on year to $6.3 billion, although digital sales increased by 75% and accounted for approximately 30% of sales during the period.