World’s largest footwear maker Nike warned of job cuts so as to encourage direct selling of products to the customers through online and retail channels.
“We are shifting resources and creating the capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs,” Nike said in an e-mail statement.
The planned layoffs come after the company on Thursday reported a $790 million quarterly net loss, its first in more the two years, as its wholesale business bore the brunt of footwear retailers and department stores shutting down due to the coronavirus outbreak.
“Reductions are not being done for cost savings. Any savings will be reinvested into our priorities,” the footwear maker said.
Chief Executive Officer John Donahoe told analysts on Thursday the company would now aim for digital to account for 50% of its overall business, up from the 30% recorded in the reported quarter.
