Nike has announced a significant round of layoffs affecting approximately 1,400 employees, primarily within its technology department. This decision is part of the company’s broader “Win Now” turnaround strategy, which aims to reshape its technology team, modernize manufacturing processes, and streamline operations across its brands, including Converse.
In a note from Chief Operating Officer Venkatesh Alagirisamy, the company indicated that these layoffs are a necessary step toward enhancing the organization’s efficiency and positioning Nike for growth amid evolving market conditions. Alagirisamy acknowledged the difficulty of these decisions, emphasizing their impact not only on those directly affected but also on their colleagues.
The layoffs will occur across Nike’s global operations, including regions in North America, Asia, and Europe, but they represent less than 2% of the corporation’s total workforce. The restructuring efforts include integrating materials supply chain work into the overall footwear and apparel teams, a move designed to create more cohesive and efficient operations.
This announcement follows a previous round of layoffs earlier in the year, where Nike cut 775 jobs at its U.S. distribution centers to enhance automation efforts. These job cuts were framed as part of a strategy to achieve long-term profitable growth after a period of slumping sales.
Despite some success in their turnaround efforts, CEO Elliott Hill has faced challenges along the way. Recent earnings reports indicated a continued decline in sales, with a significant drop expected in China—projected at around 20% for the current quarter.
Affected employees have been notified, with the company suggesting that these measures align with ongoing efforts to refine and strengthen its business approach.
