On Thursday, Nike, Inc. (NYSE: NKE) announced to cut 1,400 jobs, or 2% of its global workforce, as part of its restructure plan. Currently, the company has 70,700 employees around the world.
The company announced a new strategy to sell products more directly to customers, which is called the “Consumer Direct Offense”. Nike will pay more attention to 12 crucial cities in which over 80% of its sales growth will come from in the following three years. The cities include New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan.
“Through the Consumer Direct Offense, we're getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever,” Mark Parker, the CEO of Nike, said in a statement.
As for regions, the company plans to focus on four regions instead of six, including North America; greater China; Europe, Middle East and Africa; and Asia Pacific and Latin America.
In addition, the company plans to reduce the number of its product lines by 25%, at the same time, it will introduce more choices for the remaining product lines.
“This new structure aligns all of our teams toward our ultimate goal—to deliver innovation, at speed, through more direct connections,” said Trevor Edwards, the president of the Nike brand unit.
“Nike's leadership and organizational changes will streamline and speed up strategic execution,” the company said on Thursday.