Nike to Cut Orders from Indonesian Factories…

While its star player is angering citizens in the States, Nike is angering workers overseas as published reports say several Indonesian factories that produce Nike products may need to eliminate up to 14,000 jobs because of reduced orders from NKE.  Nike said it is actually ramping up manufacturing in Indonesia, but it is scaling back orders from these producers because of “consistent inability to meet the company's minimum product quality and delivery standard for two years.”  Thousands of workers protested outside the factories at news of the possibly layoffs.


Nike will continue to source 20% of its footwear in Indonesia, but will phase out supplies from the factories over the next nine months. Nike is the largest client of the two factories and the cut orders could effectively kill production, according to a report in the AP.

Nike to Cut Orders from Indonesian Factories

According to published reports, several Indonesian factories that produce Nike products may need to eliminate up to 14,000 jobs because of reduced orders from the Portland-based footwear company. Nike is actually ramping up manufacturing in Indonesia, but it is scaling back orders from these producers because of
“consistent inability to meet the company's minimum product quality and
delivery standard for two years.”

Nike will continue to
source 20% of its footwear in Indonesia, but will
phase out supplies from the factories over the next nine months. Nike is the largest client of the two factories and the cut orders could effectively kill production, according to a report in the AP.

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