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Nike has made a number of changes to its senior leadership team as it further leans into its digital business. But the adjustments will likely result in job losses across the company and employee termination costs of between $200 million and $250 million, the activewear giant said Wednesday. 

The changes, part of Nike’s Consumer Direct Acceleration initiative unveiled in June, include shifting toward an operating model that consists of three main categories: men’s, women’s and kids. The Beaverton, Ore.-based company said this foundation, along with renewed digital efforts, will allow it to gather greater customer data to create more specialized products while driving growth. 

“We are announcing changes today to transform Nike faster, accelerate against our biggest growth opportunities and extend our leadership position,” John Donahoe, president and chief executive officer of Nike, said in a statement. “Now is the right time to build on Nike’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth.”

Under the three-category approach, Amy Montagne has been appointed to vice president and general manager of men’s; Whitney Malkiel is now vice president and general manager of women’s, and McCallester Dowers become vice president and general manager of kids. All three report to Michael Spillane, who has been appointed president of consumer creation. 

Nike also revealed leadership changes in the Europe, Middle East and Africa (EMEA) region, as well as the Asia-Pacific and Latin America (APLA) areas.

Carl Grebert is now vice president and general manager of the EMEA region, succeeding Bert Hoyt, who will retire from the company later this year after serving 22 years at Nike. Sarah Mensah succeeds Grebert as the new vice president and general manager of the APLA region. Ann Hebert and Angela Dong remain the vice president and general managers of North America and Greater China geographies, respectively. All leaders in these regions report to Heidi O’Neill, president of consumer and marketplace.

Craig Williams, president of the Jordan brand, and G. Scott Uzzell, president and ceo of Converse, also join Nike’s executive leadership team, reporting to Donahoe. 

The new strategy means Nike will continue to invest in technology and its e-commerce and apps businesses while still recovering from the pandemic. 

Like many brands, Nike took a hit after it was forced to close stores earlier this year in an effort to prevent the spread of the coronavirus. The company lost $790 million in its most recent quarter. Shares of Nike, which were up about 0.30 percent at the start of Wednesday’s trading session, are down about 3.5 percent year-to-date. 

But there were still a few bright spots in the most recent quarter. Digital sales surged 75 percent as consumers sheltered in place. Engagement with the Nike trainer apps also grew. 

“A more digitally connected Nike is a more valuable Nike,” Matt Friend, executive vice president and chief financial officer, told analysts on the June conference call.

Nike added in a statement on Wednesday that the leadership changes and extended push toward digital “will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers.”

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