-- Restructuring May Include Up to Four Percent in Workforce
Reductions
NIKE, Inc. (NYSE:NKE) today announced the next stage of its category
business model execution, which includes the restructuring of its
business to further enhance its consumer focus and drive innovation more
quickly to market. This realignment will drive greater efficiencies
throughout the organization and may result in an overall reduction of up
to four percent of the company’s workforce. NIKE, Inc. employs nearly
35,000 people worldwide.
Two years ago NIKE, Inc. undertook a realignment of the Nike brand to
organize along key global sport categories. Today’s announcement is an
evolution of that strategy and would bring the company closer to
consumers, reduce management layers and leverage efficiencies to
increase speed-to-market advantages globally. As part of this effort,
the company will review its entire supply chain from the sourcing base
to the retail footprint to ensure it is in the best position to bring
elevated consumer experiences to market.
“The power of the Nike brand and the diversity of the Nike portfolio
continue to be a competitive strength,” said Mark Parker, President and
CEO of NIKE, Inc. “In light of the current economic climate, it is more
essential than ever to sharpen our focus on the consumer to maximize
opportunities for product innovation and brand management in the
marketplace. The decision to reduce our workforce is a difficult one,
but it will put our business in the strongest position possible to
continue to deliver long-term profitability and growth.”
The Company anticipates completing its review of its organization by the
end of the current fiscal year. The exact number, timing and location of
positions expected to be eliminated will not be known until the review
is completed and employee representative bodies have been consulted
within accordance with local legal requirements.
About NIKE, Inc.
NIKE, Inc. based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly owned Nike subsidiaries include Converse
Inc., which designs, markets and distributes athletic footwear, apparel
and accessories; Cole Haan, which designs, markets and distributes
luxury shoes, handbags, accessories and coats; Umbro Ltd., a leading
United Kingdom-based global football (soccer) brand; and Hurley
International LLC, which designs, markets and distributes action sports
and youth lifestyle footwear, apparel and accessories. For more
information, visit nikebiz.com.
CONTACT: US Media:
Derek Kent, Director, Nike US Media Relations: 212-367-4447
or
Oregon Media:
Bob Applegate, Director, Nike Oregon Communications: 503-593-2796
or
European Media:
Charlie Brooks, Director, Nike EMEA, Corporate Communications Manager:00+31-35-626-6453
or
Investor Relations:
Pamela Catlett, Vice President, Nike Investor Relations: 503-671-4859