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thletic shoe and apparel company, Nike, has announced they are undertaking a major restructuring exercise, which will result in 700 jobs being cut at its headquarters in Beaverton, Oregon.

Nike, which employs around 76,000 people globally, originally announced in July that it would make 500 cuts, but has now said there will be a further 200 job cuts by January 8.

The company has said the job cuts aren’t directly related to the COVID-19 pandemic, but are instead the result of a new strategic refocus toward online sales and direct delivery.

Nike continues to shift their focus towards digital direct-to-consumer sales, which has, in part, been accelerated by the pandemic.

According to IBM metrics reported by TechCrunch, the Coronavirus rocketed online retail forward by five years in a single six-month period, bringing about levels of digital shopping that likely wouldn’t have been seen until approximately 2025 in the pandemic’s absence.

In a statement released by Nike to The Oregonian, they said: “we are building a flatter, nimbler company and transforming Nike faster to define the marketplace of the future.”

“The changes are expected to lead to a net loss of jobs, which is always difficult.

“Through this process, we are leading with our values and are committed to acting with compassion and respect for our employees,” Nike said in the statement.

Nike’s major restructuring announced in the U.S. summer included a senior leadership reshuffle which saw new regional heads installed in Europe, the Middle East and North Africa (MENA), Asia-Pacific and Latin America.

Nike is referring to its broader digital transformation initiative as Consumer Direct Acceleration, through which it plans to ramp up investments in ecommerce and technology, as well as simplify its men’s, women’s and kids’ businesses.

Nike has bounced back strongly from the initial financial hit caused by the pandemic.

They announced their quarter revenues were down just 1%, while their digital sales increased by 82% and their direct sales were up by 12%.