Nike reports $ 790 mn loss; threat mounts on staff

The global sports brand Nike, which through its Indian arm also has a long-standing kit partnership with the Board of Control for India, has reported a loss of $790 mn during the fourth quarter of last fiscal.

The financial setback, escalated due to an unprecedented drop in retail business following novel coronavirus-enforced lockdowns across the globe, will also lead to job layoffs.

The company, however, has stated that the layoffs will be part of the company’s restructuring process and are not due to the impact of the COVID-19 pandemic.

Nike has put the threat of job losses in the company on record. “We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs,” reads a company statement.

CEO John Donahoe in an internal email to staff has stated that layoff will begin from July. Retrenchments, expected in phases, will not affect the manpower at retail stores, distribution centres and manufacturing facilities.

BCCI deal under threat

In India the company has reportedly informed the BCCI that it won’t be able to match the Team India kit sponsorship deal worth ₹ 84.34 lakh per international match.

The decision will lead to the Indian Cricket Board initiating a tender process for the contract that will come up for renewal in September.

Nike has been the Indian national cricket team’s apparel and kit partners since 2006.

Admin Sportz Front

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