Leading global shoe maker Nike Inc has announced that it would cut down at least 2% of its workforce and get rid of 25% of existing shoe styles in the face of rising competition. Nike still holds 50% of the US market share but has been out under fierce competition from Adidas and Armour Inc. In fact Nike lost its top selling sneaker crown to Adidas’s retro Superstar shoes recently after reigning for more than a decade. Nike is also focusing on organisation restructuring and new operating segments.
Nike has zeroed in on 12 major cities around the world that the company envisions to bring in 80% of its expected growth in the coming years. New York, Berlin, Barcelona, Paris and Chicago are some of those cities. New operating segments would be Greater China, Europe, North America, Middle East and Africa, Asia Pacific and Latin America. The company will only focus on products with a high growth potential. Nike ZoomX, AirVaporMax and Nike React shoes will be the key products that will get most of the love. The company is also willing spend most of its efforts towards soccer, running and basketball products.
Apart from organisational shakedown Nike is also focusing on cutting down the time required to create and innovate. According to reports, the company has undertaken steps that will cut down innovation time by half. All of these changes are being led by president of Nike Trevor Edwards. Currently Nike employs around 70700 people globally.