Beaverton footwear maker Nike Inc. to cut jobs in digital push



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Beaverton footwear maker Nike Inc. to cut jobs in digital push

Late on Friday, Nike Inc., the Beaverton, Oregon-based American multinational footwear maker, much-known for its invigorated presence in the sports arena, had raised an alarming bell for its employees across the globe saying that the world’s No.

1 footwear manufacturer had been brewing off an option to slash a number of jobs in a digital push as the American footwear maker has been ramping up efforts to sell its products directly to the consumers through its online and retail channels.

In point of fact, latest statement from the Oregon-based footwear maker came forth shortly after the company had reported $790 million in quarterly loss, remarking Nike Inc.’s first quarterly loss in more than two years as its wholesale businesses appeared to be hoisted down amid months of lockdown while the footwear’s retail and departmental stores were closed due to the forced closure measures.

Besides, followed by the reveal of its first quarterly earnings’ report, Dow-listed shares’ prices of Nike Inc. had opened more than 6 per cent lower and winded down the day with a staggering loss of 7.73 per cent to $93.67.

Nike job cuts are not part of cost saving attempts, says CEO

Meanwhile, as a number of big-league retailers across the globe had been bearing the brunt of forced business closures and seeking for cost-cutting measures such as a bailout package from the creditors or a termination of dividend payment, adding that the latest round of job cuts were not being conducted for cost-saving purposes, Nike said in an e-mailed statement, “We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs.

” Besides, in a post earnings’ call with the analysts, Nike Inc. Chief Executive John Donahoe was quoted saying that the company would aim for 50 per cent of its sales meaded out of the digital platforms, up from 30 per cent registered in the past quarter.