Nike to Cut 2% of Workforce, Focus on Major Markets & Faster Product

Today, Nike made headlines on big business platforms when word hit that they will cut 1,400 jobs. While that effectively stinks for those afflicted, as The New York Times points out that number equates to about 2% of their global workforce.

The other headline going on today pertained to the ‘localized’ shift of Nike business. While this may conjure up images of farmer’s markets or other hometown efforts, it appears to be more of a focus on their 12 major markets including the likes of New York City, Beijing, Milan, Paris and other metropolitan juggernauts. Those cities should see more localized product, more stores and more engagement.

For consumers around the world, the main and most exciting reports from Nike’s new focus is their desire to deliver product faster to the customer. “The future of sport will be decided by the company that obsesses the needs of the evolving consumer,” Mark Parker, Nike’s chief executive, said in a statement. As Parker’s words are relayed by The Times, Nike is “getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever.”

This makes total sense in the Amazon Prime pushed market where customers want their goods faster than ever. What’s perhaps most exciting to sneakerheads is that Nike is looking to cut its product-creation cycle time in half. As trends move at light-speed and a new NBA salary cap has signature athletes changing teams each season this could be quite interesting.

What are your thoughts on Nike’s new business shift? Let us know in the comments section.