Nike “saves to invest”, cutting 1,600 jobs

Under the “Save to invest” programme, Nike is going to cut more than 1,600 jobs. This should free up two billion dollars over the next three years.

More Jordan, less staff

The sportswear giant is reducing its workforce by 2 %, mainly at its headquarters. According to a memo from CEO John Donahoe, the reorganisation would not affect employees in stores, distribution centres and the innovation team, The Wall Street Journal reports.

The job cuts will take place in two phases: the first one starts today, the second will be completed before the end of the current financial year (in May). Nike says it wants to get back to long-term growth, after disappointing sales results in China and North America last year.

Nike wants to streamline its organisation to take full advantage of this time when interest in sports, health and wellness has never been greater, Donahoe said. The company plans to focus extra on running, women’s apparel and the Jordan brand.