Nike confirms a new round of layoffs affecting around 1,400 employees worldwide, as part of an ongoing restructuring plan. The cuts, announced internally by Chief Operating Officer Venkatesh Alagirisamy, mainly impact the company’s technology division and represent just under 2% of its global workforce.
Nike Strategy Focuses on Simplification
The latest decision is presented as a continuation rather than a sudden shift. In an internal memo, management describes the move as the “next phase” of an already ongoing transformation. The objective is to simplify operations and make the company more responsive in a changing global market.
The restructuring includes efforts to streamline supply chains across footwear, apparel and materials, while also centralising technology operations. Two main hubs are being strengthened: Beaverton in Oregon and the Nike India Technology Center, reports Foxbusiness.
Cuts Spread Across Several Regions
The layoffs are not limited to one area. They affect teams across North America, Europe and Asia, reflecting a global adjustment rather than a localised decision. The focus on technology roles suggests a shift toward automation and more centralised systems, which reduces the need for certain positions.
Nike also plans to move some Converse manufacturing and engineering activities closer to production partners, another sign of efforts to tighten operations and reduce complexity.
A Series of Ongoing Reductions
This announcement follows several rounds of job cuts over the past year. In January, Nike revealed plans to cut 775 jobs linked to automation in distribution centres. Earlier, in February 2024, the company announced a reduction of more than 1,600 roles, followed by smaller cuts later in the year.
Taken together, these decisions point to a broader transformation under CEO Elliott Hill, who took over in 2024. His approach focuses on refocusing the brand on core sports such as running and football, while accelerating product launches.
Financial Pressure in the Background
The restructuring comes as Nike faces a more complex financial environment. The company expects a 2% to 4% drop in sales this quarter, with a sharp decline of around 20% in China, one of its key markets.
While the stock saw a slight uptick after the announcement, Nike’s share price has lost more than half its value over the past three years. This context helps explain the urgency behind efforts to reduce costs and reorganise operations.
What This Means for the Company
Nike’s latest layoffs reflect a company trying to adapt to shifting demand and rising competition. By focusing on automation, centralisation and core product categories, the group is aiming to rebuild a more agile structure.
For employees, the impact is immediate and tangible. For the company, the challenge now lies in turning these internal changes into renewed growth, in a market that is becoming more demanding and less predictable.
