Nike to Lay Off 1,400 Employees Amid Restructuring
Nike announced on Thursday that it will be laying off around 1,400 individuals as part of its global operations overhaul.
Venkatesh Alagirisamy, the Chief Operating Officer, informed employees that these cuts will mostly impact the technology division, affecting regions in North America, Asia, and Europe. This represents nearly 2% of Nike’s total workforce.
In his memo, Alagirisamy clarified, “This is not a new direction. It is the next stage of work that is already underway.”
This layoff announcement follows a series of job cuts as Nike continues its business restructuring efforts.
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Earlier in January, the company had already disclosed plans to eliminate 775 positions in a move toward automating its distribution centers.
Then in February 2024, Nike revealed it aimed to reduce its workforce by about 2%, which translates to over 1,600 jobs. A subsequent announcement in August indicated that the company would cut less than 1% of its workforce as part of a turnaround strategy led by CEO Elliott Hill.
Although Nike’s stock has dwindled by more than half in value over the last three years, there was a slight uptick of approximately 0.5% in after-hours trading.
According to Alagirisamy’s memo, the intention behind these layoffs is to enhance the efficiency of the company’s supply chain for materials, footwear, and apparel, as well as to centralize technology operations in Beaverton, Oregon, along with the Nike India Technology Center.
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Nike also plans to shift some manufacturing and engineering operations of Converse closer to its factory partners.
“These changes aim to simplify operations and boost the company’s responsiveness,” Alagirisamy said. “Our future vision involves streamlining processes, leveraging advanced automation, and establishing a more robust foundation for growth.”
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| NKE | Nike Co., Ltd. | 44.78 | -0.90 | -1.97% |
Since taking the helm in 2024, Hill has committed to fast-tracking new product launches while re-emphasizing core sports sectors like running and soccer.
Nike anticipates a sales decline of 2% to 4% this quarter, especially with a notable drop of about 20% in its key market, China.
When approached for further comments, Nike directed inquiries to Alagirisamy’s memo.
