American footwear brand Nike plans to lay off 1,400 employees across its global operations team, with the majority of cuts to be from its Information Technology (IT) department under its 'Win Now' action plan, which is aimed to streamline operation and positions for the brand for its long-term revenue growth.
The announcement made by Indian-origin chief operating officer (COO) Venkatesh Alagirisamy in a memo to the employees stated that the job cuts are a new direction, but the next phase of work is already underway. According to The Times of India (TOI), he also stated some important areas for the company to focus on:
Technology Modernisation: Consolidating the technology footprint, streamlining structures, and focusing on two hubs — the Philip H. Knight Campus and Nike India Technology Centre.
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Air Manufacturing Modernisation: Adjustments in staffing and processes at Air MI facilities in Beaverton, St. Louis, and Vietnam to improve resiliency and innovation.
Converse Ground Game: Moving Converse Footwear Manufacturing and Engineering resources closer to factory partners for stronger collaboration.
Materials Supply Chain Integration: Positioning materials work closer to footwear and apparel supply chain teams for faster, synchronized decisions.
Nike stated that the affected employees will be contacted directly by leaders and HR partners. The company promised to offer clear information and support during the transition time.
Nike COO Venkatesh Alagirisamy’s memo to employees here
Team,
NIKE, Inc. is in the final stretch of our Win Now action plan.Across the company, we have been taking deliberate steps to strengthen our foundation, sharpen how we compete, and build a model designed to deliver long-term profitable growth. Global Operations is critical to that effort.
Today, I am sharing the next phase of that work and doing so with the entire company because of the scope and importance to our collective future.
Over the coming months, we will continue evolving Global Operations to better serve athletes and the business with more speed, simplicity, and precision. Some of that work is happening now and more will continue over time as we align our teams, capabilities, and footprint to the future needs of the company. This is not a new direction. It is the next phase of the work already underway.
Earlier this year, I outlined four actions we’re taking across Operations to help make NIKE, Inc. a more responsive, resilient, responsible, and efficient company: optimising our supply chain footprint, accelerating technology deployment, investing in upskilling our teams, and strengthening our partner and supplier relationships. The changes we are making now build on that work.
At its core, these shifts are about building a Global Operations organisation that is more focused, more integrated with the business, and better built for the pace of sport. In the coming weeks, several significant changes will take effect across Global Operations. These actions will result in changes to some team structures, work locations, and headcount.