Nike said it would cut about two percent of its global workforce as it implements the "Consumer Direct offense," a reorganization initiative that targets customers in 12 key cities.

"In the new alignment, the company will drive growth by deeply serving consumers in 12 key cities," the company said in a news release. "Nike is moving closer to the consumer -- creating a local business, on a global scale."

From The Weekender

Machines Without a Beating Heart?

Read on The Weekender

The focus cities -- New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Milan -- are expected to account for more than 80 percent of the Nike's growth through 2020.

The company restructured its global business, cutting the number of geographies from six to four and creating new employee teams so that digital and merchandising will be more responsive to key markets. 

Read also: Victoria's Secret and Nike rank among top brands for millennials

Other changes include the goal of cutting product cycle times in half and new investments in categories seen as offering the greatest growth potential, including running, basketball, global football and young athletes.

The changes come as department stores and other retailers close hundreds of stores due to the growth of e-commerce and mobile technology. 

"Today we serve our athletes in a changing world: one that's faster and more personal," said Trevor Edwards, president of the Nike Brand.

"This new structure aligns all of our teams toward our ultimate goal -- to deliver innovation, at speed, through more direct connections."

Popular

Prabowo begins third year with tighter grip as public support slips

Power for the people

France to deploy 70,000 police for fresh weekend protests