Nike would be cutting out some workforce amid fast-changing consumer trends and intensive competition. It also said to be eliminating a quarter of its shoe styles.
The shoe maker is learned to be reducing its business segments from six to four and moves come at such a time when it is battling for market share in North America against Adidas AG and Under Armour Inc.
Nike’s shares too have declined by 2.7 percent at $53.59.
The company has come up with new plan termed as “Consumer Direct Offense” under which it will concentrate on 12 key cities including Paris, Barcelona and New York in ten countries, focusing more on newer styles like the Nike React, ZoomX, and Air VaporMax.
In the United States market the company enjoys 50 percent share and Nike has been holding a good position for over a decade.
However, Adidas’ retro Superstar shoes toppled the company in 2016 and became the top-selling sneakers.
Nike said it would be speeding up its innovations with double the efforts amid cut down of workforce by 2 percent.
Nike brand president Trevor Edwards will be leading the initiative and he is learned to be making changes in the leadership structure too.
The company will also be reporting results based on the newly announced operating segments: North America, Europe, Middle East and Africa, Greater China, and Asia Pacific and Latin America.
With the new update the company may sack about 1,400 employees.