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Nike begins layoffs, shakes up leadership

By Mike Rogoway, oregonlive.com
Published: July 22, 2020, 10:42am

PORTLAND — Oregon’s largest company said Wednesday that it is beginning layoffs the company announced last month as it shakes up the company’s leadership and realigns its strategy under newly installed CEO John Donahoe.

“While we aren’t not providing numbers, the changes are expected to lead to a net loss of jobs, which is always difficult,” Nike said in a written statement. “We’re focused on shifting resources and creating capacity to reinvest in our highest potential growth areas.”

Nike said it will spend between $200 million and $250 million on termination costs associated with the cutbacks, which suggests the scale of the cuts will be substantial.

Nike employed 77,000 at the time of its most recent annual report, which is now nearly a year old. An updated tally is imminent.

The company said previously its pending layoffs are associated with the new strategy, not disappointing sales the company reported last month, and indicated the job cuts will continue at least into the fall.

Nike calls its new strategy “Consumer Direct Acceleration.” Its focused on online sales, directly to customers. That could reduce the company’s reliance on less-profitable sales through physical retailers, including struggling department stores and footwear specialists inside malls.

Nike said last month it is realigning to focus on just three product categories – men’s, women’s and kids. The company named two current executives to run the segments: Amy Montagne will run the men’s group and Whitney Malkiel heads the women’s category.

They will report to Michael Spillane, president of “consumer creation,” while Heidi O’Neill will oversee Nike’s geographic segments and president of “consumer and marketplace.

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