This is round one. There is a round 2 and it will hit in august. At that time, the cuts will be heavier in geographies, and enabling functions ( IT again, HR, Procurement, Workplace Design and Connectivity, Category Ops, Legal, and Supply Chain). Nike must do something aggressive to regain swagger, but the C Suite has been misled by McKinsey's of the world that operational overhead reduction is the correct step in that direction.
The leaders of Nike are strong, but one click down, it's largely a disaster. There are 100's of Vice Presidents. Many of them outsiders, with little historic understanding of what makes Nike, Nike. The culture has eroded for years, and accelerated greatly since 2014. It takes someone special to,lead at Nike, and that has somehow become lost. The culture must be regained. Many of those cut were well versed in driving culture.
Additionally, Nike must now learn that the playing field has shifted with consumer behaviors. While the brand is still hot, it is slipping with key demographics quickly. The brand heat is faded. They are chasing adidas now. You can feel it. Revenues at Nike higher, but you can feel that the table has turned, momentum has switched to Herzo.
If Nike is serious about change, look to the 100's of S bands that are steering the Goddess straight into an iceberg.