Nike: Cutting Jobs, signing Cristiano Ronaldo, making me hate them

Posted on May 18th, 2009. Written by Emmett Jones.

Is it possible for Nike to still mean “victory” in the current economic recession?  The shoe/athletic apparel giant has decided to strategically realign its business.  And yes, realignment is a lot easier when there aren’t as many people, right? RIGHT!

Shoe and apparel company Nike Inc. said Thursday that it will cut about 1,750 jobs worldwide, or 5 percent of its global work force.

About 500 of the jobs lost will be at Nike’s world headquarters in Beaverton, Ore. The company did not specify what departments the cuts would be in.

“Our new structure sharpens our consumer focus globally to drive continued growth while positioning Nike Inc. competitively in today’s marketplace,” Chief Executive Mark Parker said in a statement. “We remain a growth company and we know these changes have created a stronger organization that will enable us to invest in our most significant opportunities.”

The company, whose other brands include Converse, Cole Haan and Umbro, remains the industry leader. But Nike saw its profit drop in the most recent quarter, largely on one-time items, and its revenue fell 2 percent as the economic downturn dragged on.

You know, you have to love the spin that people always put on bad news.  Layoffs = sharpening our consumer focus globally to strategically position itself in today’s marketplace.  Really? Cause it looks like you’re laying people off because the economy has caused revenue to dramatically slow down making it unprofitable to keep so many workers.  Maybe Cristiano Ronaldo can bring some good news to brighten Nike’s spirits?

Cristiano Ronaldo will give the clearest indication yet that he will remain at Manchester United next season by signing a long-term deal with his sponsors Nike this week.

The new deal, which is worth up to £25million over the next five years, effectively rules out a move to Real Madrid, who are endorsed by Nike’s biggest rivals, adidas.

So, maybe Nike has to lose a few workers, but they’ll be keeping the man who is arguably the worlds most visible athlete (*cough* Tiger Woods is the greatest sports figure ever *cough*) in their stable for another 5 years for only $38 million dollars.  Goes to show how profitable American sports is, doesn’t it?  You are dealing with arguably the most popular player in the most popular sport at the peak of his abilities, and he gets a 5 year/$38 million dollar deal.  Nike signed Lebron James to a 7 year-$90 million deal out of high school, when he was still unproven.

And speaking of Bron-Bron, what’s Nike doing to “sharpen consumer focus” here in the states?  Puppet. Commercials.  Maybe I’d appreciate them more if they used Kobe and Lebron’s real voices (they’re under contract, right? you couldn’t get them to make a commercial?) or if they just weren’t Nike’s ‘little Penny’ commercials recreated, minus Chris Rock and Tyra Banks (Nike! I’m old enough to remember those commercials, you cant fool me by re-making them using puppets and no celebrities).  Maybe the real Kobe and Lebron would have cost too much money, and Nike wanted to make sure the lay-off number didn’t go over 1,750? Maybe Nike is re-positioning itself to take over the athlete-puppet market? Who knows.

I hope this recession is over soon, or 6 months from now Nike might be passing off pet rocks as NBA superstars.

Houston Chronicle — Nike to cut about 1,750 jobs worldwide

Mail Online — Long-term Nike deal holds key to Ronaldo’s future at Manchester United

1 Responses »

1. 

   SportsCardGirl

   July 26, 2010 • 10:16 am

   If there would be a decrease for the players, it might have great impact on them and their performances is at stake. I hope that the passion would still be there.
   Regarding the declared lost, there might something wrong. But i still don’t want to judge. Lets just hope that this will be settled and hope that the life of NBA will still remain.

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