Nike in a letter to employees warned of layoffs as the company shifts resources to invest in high-potential growth opportunities, including accelerated investments in digital.
“We will soon be forced to make some difficult choices that will likely result in a net reduction of jobs,” said the e-mail sent late Thursday, according to Complex Magazine. Donahoe wrote that the company does “not yet know how many jobs will be reduced, nor who will be specifically impacted.”
The layoffs come as Nike on Thursday night revealed a Consumer Direct Acceleration strategy designed to further drive digital engagement and growth while reporting fiscal fourth-quarter results that were hampered by COVI-19.
Nike said in a statement to CNBC, “We are building a flatter, nimbler company and transforming Nike faster to define the marketplace of the future. We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs. Reductions are not being done for cost savings. Any savings will be reinvested into our priorities.”
Donahoe told analysts on Thursday the company would now aim for digital to account for 50 percent of its overall business, up from the 30 percent recorded in the fiscal fourth quarter. He said, “As we look at opportunities to build deeper and more meaningful relationships with consumers, our vision is to create a clear and connected digital marketplace to match. Consumers want modern, seamless experiences, online to offline, so we’re accelerating our approach.”
Photo courtesy Nike