Nike has announced a new business structure which involves cutting two percent or 1,400 jobs of its workforce worldwide, according to a company statement.

The new approach, dubbed Consumer Direct Offense, aims to accelerate innovation and product creation by moving even closer to the consumer through key cities such as New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Milan. These 12 key cities, as well as 10 other countries, are expected to represent over 80 percent of Nike’s projected growth through 2020.

Trevor Edwards, President of the Nike Brand, will drive this division moving forward through integrated category, geography, marketplace, product, merchandizing, digital and direct-to-consumer teams.

“Today we serve our athletes in a changing world: one that’s faster and more personal,” said Edwards. “This new structure aligns all of our teams toward our ultimate goal—to deliver innovation, at speed, through more direct connections.”

Nike CEO Mark Parker also shared, "Through the Consumer Direct Offense, we're getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever."

As part of its new initiatives, Nike is also strengthening its innovation efforts and production times. Its new Express Lane operation, which is already utilized in North America and Western Europe, quickly creates, updates and fulfills products in response to consumer demand. Nike will be implementing that concept to China this summer, where it will serve other key cities of Shanghai, Seoul and Tokyo.

Furthermore, the company plans to combine, its Direct-to-Consumer retail channel, and the Nike+ digital products business, while also planning to cut the number of its shoe styles by a quarter.

Overall, this new reorganization by Nike is in effort to adapt to a changing market landscape and the shifting roles of major global brands and the retailers that sell their products, as well as to appease its investors who have grown concerned about Nike's recent financial performance.

In other news, Jordan Brand has reimagined classic retros for its Fall 2017 collection.

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