Nike to Slash 1,400 Jobs, Cut Sneaker Styles in Shakeup

This essay focuses on the workforce downsizing plan that Nike has announced it would initiate. According to the story, Nike announced a new campaign policy known as direct consumer offense, in which the brand would decrease its global labor supply by 2%, resulting in the layoff of 1400 workers as the company aims to attract more consumers directly via online channels.

The 2007-2009 economic downturn and credit squeeze had a huge impact on Nike. The company is steadily shaking off these effects and the only way to fully recover from it, Nike has to come up with a less costly platform through which they will maintain and attract new customers so that their operating expenses are cut down substantially. By cutting down on its global employees, the company will have a chance to increases sales through the online platform and maximizes sales as currently many retail companies are considering the online platform for their products as fewer expenses are incurred which gives the company a competitive edge to grow financially stable and improve their products quality. In this case, Nike targets cutting down on employment internationally so that it can have enough resources to improve its products quality, increase customer service and as breaking ground for introducing a new product line in the market. Although reducing labor supply will result in unemployment, it will, however, help the company to reduce excessive overhead expenses, increases value of its products by using resources saved to focus on quality, improve its focus on particular market and how to serve it well, improve the current productivity levels, and even to reinstate competitive performance within its operations.

Work cited

“Nike To Slash 1,400 Jobs, Cut Sneaker Styles In Shakeup”. Myajc, 2017,

http://www.myajc.com/business/nike-slash-400-jobs-cut-sneaker-styles-shakeup/fuZIIQTQpWGJbPV5lyMO0O/.