Nike has announced a senior leadership reshuffle and plans for an undisclosed number of job cuts as part of a major restructuring that is set to cost the sportswear giant as much as US$250 million.
Nike has announced it is expecting “a net loss of jobs across the company” and a slew of new executive appointments as part of its latest restructuring exercise amidst the COVID-19 pandemic.
The sports apparel giant did not indicate the number of employees affected but said the job cuts will result in one-time expenses of US$250-$300 million.
“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” said Nike Chief Executive John Donahoe.
“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 said the new structure would be “nimbler” and “flatter” and lead to a streamlining of its corporate leadership team.
Among the appointments, Nike tapped Craig Williams, president of the Jordan Brand, and G. Scott Uzzell, president of Converse, to join the executive leadership team reporting to Donahoe.
The company also announced new division chiefs for Men’s, Women’s and Kids, as well as regional leaders in Europe, Middle East and Africa and in Asia Pacific and Latin America.
Indian Cricket & Nike : Nike India unlikely to continue with apparel sponsorship of Virat Kohli’s team
The plummeting sales worldwide will also affect the Nike’s relationship with the Indian cricket team. Nike has been kit partner for Indian Cricket since last 14 years. But as now the deal comes to end, Nike is unlikely to continue.
The current deal for 4 years between BCCI and NIKE is due to end on September 2020. And according to the information available with InsideSport, the brand is unlikely to renew the deal at the existing levels.
NIKE’S 4 Year deal for Indian Jersey with BCCI is worth 370 Crores
According to the info with InsideSport, Nike had pledged Rs 370 crores to renew the kit sponsorship with the Indian team in 2016. As per the contract Nike pays 87.34 lac per game currently.
That is the reason, BCCI will soon announce the fresh tenders to discover the new apparel partner for the Indian Cricket.