Nike plans on implementing a new business structure, which includes laying off 2 percent of its workforce.
According to CNBC, “Nike’s leadership and organizational changes will streamline and speed up strategic execution,” the retailer said in a statement Thursday, explaining plans of how Nike will also change the reporting divisions of its company.
“The changes are … expected to result in an overall reduction of approximately 2 percent of the company’s global workforce,” Nike said.
As part of the organizational restructuring, approximately 1,400 employees are planned to be let go amongst the 70,000 employees they have.
CEO of Nike, Mark Parker said the plans to make these changes has to do with increasing product development and concentrating on key markets.