To narrow down its global operation, Nike India issues pink slips to 20% of its staff

In order to downsize its operation globally, US sports manufacturer Nike's Indian unit fired 20% of its staff, reported the Economic Times. However, the sports brand gave its fired employees an option to join its operation in Southeast Asia. 

The downsizing comes under the company's strategy of global restructuring where Nike will be focusing on 12 cities in 10 countries to achieve 80% its projected growth by the year 2020.

"In June, we announced that as part of Nike's move to align the company against the Consumer Direct Offence, a strategy that allows us to serve our consumers faster and more personally, there would be workforce reductions, and that has been the case in India. Our headquarters in India remain in Bengaluru with two other offices in Delhi and Mumbai," a Nike India spokesperson told ET. 

The company's revenue in FY 16 fell to Rs 764 crore from Rs 803 crore in FY 15. In June, the sneaker maker said that it plans to sell more shoes directly to customers online as part of a restructuring in which it plans to cut about 1,400 jobs. It will also reduce the number of sneaker and clothing styles it makes by a quarter and focus on hot sellers.

Earlier, Nike, which is based in Beaverton, Oregon, reportedly had said that it had closed around 35% of its stores in India. Nike entered in Indian market in 2005 and recorded an increase in its losses from Rs 101 crore in 2014-15 to Rs 170 crore in 2015-16, according to data from Registrar of Companies (RoC).