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Nike to axe 2% of global workforce in restructure

Sportswear giant Nike is cutting around 2% of its workforce as part of a company-wide restructuring.

It is estimated that the move will result in roughly 1,400 job cuts. The retailer employed 70,700 staff as of May 2016, according to its latest annual SEC filing.

The brand will also slash its number of footwear styles by 25%.

Chairman and chief executive Mike Parker said in a statement that the revamp forms part of an effort to refocus on key markets and “deliver products faster”, as the brand gets “even more aggressive in the digital marketplace”.

As part of the overhaul, Nike is prioritising its 12 key cities and countries: New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan.

These markets are expected to drive 80% of the label’s projected growth through 2020.

Nike also outlined plans to combine its website, direct-to-consumer retail channel and digital products business.

Meanwhile, executive Michael Spillane has been appointed in the newly created role of president of categories and product, to speed up product development.

Additionally, Nike’s “express lane” service, which creates and updates products in response to consumer demand, will launch in China this summer.

The initiative, called the “customer direct offense”, will be spearheaded by Nike brand president Trevor Edwards.

Edwards said: “This new structure aligns all of our teams toward our ultimate goal—to deliver innovation, at speed, through more direct connections.”

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