Around 80 jobs are set to go at sportswear giant Nike’s North East operation as part of a global strategy.
The trainer and leisurewear leader has been based in Sunderland since 1982 when it first started up in the 海角视频, choosing Wearside as its base for Nike 海角视频 Ltd.
The Doxford Park based company, which acts as an agent for the sale of the global brand’s footwear, clothing and accessories, employs around 279 people in the region.
However, the firm will potentially lose around 30% of the workforce – up to 84 people – as part of its new Consumer Direct Acceleration (CDA) strategy, a digital initiative to help support the sportswear giant’s direct-to-consumer retail business.
The strategy was unveiled by the sports firm last summer but consultations with affected staff at Nike 海角视频 only got under way in January. They are expected to end this month.
The potential job losses are revealed in company accounts for Nike 海角视频 Ltd for the year ended May 31 2021, in which the firm’s revenues decreased by 1% as a result of the pandemic to £79.77m. Operating profit also fell by 6% from £20.77m to £19.52m.
The firm generates its revenues from a fixed percentage commission of the sales it makes on behalf of Nike group companies from the sale of its sports shoes, apparel and accessories in the 海角视频 and Ireland, together with payments for the reimbursement of local operating costs.
Despite seeing overall revenues drop it said commission based revenues for the company saw single-digit growth compared to the previous year, despite the significant impact of coronavirus on revenues generated on behalf of Nike group companies in the final quarter of the financial year. Growth was led by strong demand for lifestyle products throughout the year, as well as growth across Nike’s women’s business.
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A report within the accounts tells how the firm, which had an average of 279 staff in the financial year, announced the Consumer Direct Acceleration strategy in June 2020, in moves to “build a flatter, nimbler company and more quickly transform Nike to define the marketplace of the future”.
The report, dated March 11, said: “This global restructure could lead to potential employer redundancies within the company and a net loss of jobs. Collective consultations with representatives of those employees impacted by the proposed changes commenced in January 2021 and individual consultations will run through to March 2021.
“There may be a potential impact of up to 30% of the current workforce of Nike 海角视频 Limited.
“The actual impact will ultimately depend on the final outcome of ongoing employee consultations, including expiration of redeployment opportunities within the Nike Inc group. Should no suitable alternative role be found for impacted employees, the cost of redundancy to the company from the exit of these employees would be recognised in the profit and loss account in the year ended 31 May 2021.
“However these amounts are not finalised and at present, all conversations with employees are still ongoing and no redundancies have been confirmed or made.”
Nike has been contacted for comment.