Home Business Nike consolidates operations due to Covid-19 – Times of India

Nike consolidates operations due to Covid-19 – Times of India

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NEW DELHI: Covid-19 has forced Nike to further consolidate its operations in India. The world’s largest sportswear company has laid off a chunk of its already diminishing workforce in the country, while asking others to join its operations in South East Asia and shelved plans to open a huge back office in Bengaluru, sources said.
The move comes against the backdrop of the US-headquartered company shuttering 35% of its stores in India in 2016, following it up by reducing the number of its stores to around 150 or lower in 2019. It signals India’s diminishing importance as a growth market in its global scheme of affairs. As reported by TOI earlier, the company, during the same period, had let go of a significant number of its employees, while absorbing some in its Southeast Asia operations.
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“We have had a few people leave last week as part of the continuation of the global Consumer Direct Acceleration work we announced earlier this summer. Nike remains in India. Beyond that we don’t have further information to share,” a Nike spokesperson said in reply to a questionnaire emailed by TOI.
New Delhi-based SSIPL, which runs Nike stores in India, will play a bigger role for
the company, a person familiar with the development said. “Unlike other global sportswear companies, Nike did not localise its products for India, as a result of which it found it difficult to cut its losses in the domestic market. It remains to be seen whether Nike would continue having a corporate office here or run operations completely from Singapore,” he said.



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