Nike is to cut an estimated 1,400 jobs around the world and said it plans to speed up product development in order to keep up and anticipate consumers’ tastes and changing demands. As of May 31, 2016, Nike employed about 70,700 people globally. The brand plans to cut the lead time needed to get new products on the shelves and to reduce the assortment of products it sells by 25%. Nike’s shares are reported to have fallen 2% upon the announcement on June 15.

The Group is also seeking to simplify its geographical structure and will change from six to four reporting segments as from the beginning of 2018; North America, Europe, Middle East and Africa, Greater China and Asia Pacific, and Latin America.

Nike said it will focus its efforts on 12 key cities: New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Milan, which are expected to drive 80% of the brand’s growth through 2020.

Sources: FT/CNBC