As a part of downsizing exercise, Nike fires 20% of employees in India
As a part of its downsizing exercise, US sportswear maker Nike has fired nearly 20 percent of its employees in India, according to a report in Economic Times.
However, the fired employees were given an option to join its operations in Southeast Asia.
The move is a part of Nike's global restructuring initiative where the company will focus on 12 key cities including New York, Shanghai, London, Tokyo, Paris and Mexico City to achieve 80% of its projected growth by 2020.
Meanwhile, the list does not feature any Indian city.
Entered in India in 2005, Nike currently operates 200 stores. Earlier, as a cost-cutting measure, the company had pulled out of cricket bat sponsorship deals and had closed around 35% of its stores in India.
“In June, we announced that as part of Nike's move to align the company against the Consumer Direct Offence, a strategy that allows us to serve our consumers faster and more personally, there would be workforce reductions, and that has been the case in India,” a Nike India spokesperson was quoted as saying.
However, the company said the headquarters in India will remain in Bangalore with two other offices in Delhi and Mumbai.
Earlier, Nike CEO Mark Parker had announced that the company has been planning to cut about 1,400 jobs as part of a restructuring initiative.
The company also recorded an increase in its losses from Rs 101 crore in 2014-15 to Rs 170 crore in 2015-16, said the report.