Nike said Wednesday it’s cutting jobs and shuffling its executive ranks as the sports apparel giant shifts more of its focus to digital sales versus brick-and-mortar retail outlets, which have taken a beating amid the coronavirus pandemic.
Nike didn’t specify how many of its 76,700 employees worldwide will get the ax, but disclosed on its website that the cuts will result in a pretax charge of $200 million to $250 million.
A spokeswoman for the maker of Air Jordan and LeBron 17 Graffiti shoes portrayed the cuts as a reallocation of resources rather than a reduction in costs, CNBC reported Wednesday.
Overseas C-suite changes will affect Nike management in Europe, the Middle East, Africa, the Asian Pacific region and Latin America, according to Nike president and CEO John Donahoe.
Nike shares on Wednesday were little changed in midday trading at $98.40.