Nike CEO Warns of New Layoffs Next Year Amid Changing Operating Model - WWD
Nike CEO Elliott Hill has announced a new operating model called 'Pace' that will involve organizational restructuring and future layoffs. The plan aims to streamline operations and focus on long-term growth across three global geographies.
Why it matters
As a major global retailer, Nike's restructuring signals broader trends in supply chain management and corporate efficiency in the apparel industry.
Nike president and chief executive officer Elliott Hill hoped to qualm fears among employees bracing for more layoffs in a new memo published online on Thursday.
In the letter to employees, Hill announced changes to Nike ’s operating model that will help "accelerate and scale" the "Sport Offense" strategy and position the Swoosh for long-term growth.
The new plan, dubbed “Pace,” includes efforts to modernize Nike's global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs. Related Stories Nike's Asia-Pacific Plan: Shift Out of China, New Focus on Singapore Raises Doubt Despite a Longer-Than-Expected Turnaround, Here's What's Working for Nike
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