Nike Announces Layoffs Amid Restructuring Efforts
Nike recently revealed plans to cut around 1,400 jobs, which is less than 2% of its total workforce globally. This decision comes as part of a restructuring initiative spanning their operations teams in North America, Europe, and Asia.
In a memo sent to employees, the company’s chief operating officer emphasized that these layoffs aim to boost efficiency across the organization.
“We have taken intentional steps to strengthen our foundation, enhance the way we compete, and create a model for long-term profitable growth,” remarked COO Venkatesh Alagirisamy. He added that efforts to refine global operations would continue as they strive to serve athletes and businesses better.
Additionally, Nike plans to invest more in two key locations: its World Headquarters and the Nike India Technology Center. Enhancements will include upgrading technology equipment and refining the company structure for improved performance.
“These changes are aimed at reducing complexity and increasing responsiveness for the company,” Alagirisamy noted. He elaborated on the need to simplify operations and utilize greater automation for boosting efficiency while building a stronger foundation for future growth.
Despite these announcements, Nike’s shares experienced a slight uptick of 0.5% in after-hours trading. However, the company has seen significant declines, losing more than half of its market value over the last three years, as competitors like On, Hoka, DECK.N, and Anta continue to gain market share.
In March, Nike disclosed that its net income for the third quarter of fiscal 2026 had dropped to $520 million, down from $794 million the previous year. Diluted earnings per share also fell, decreasing from 54 cents to 35 cents.
Since taking on the role of CEO in 2024, Elliott Hill has expressed his commitment to refocusing Nike on core sports areas and launching innovative footwear.
“This is not a new direction,” Alagirisamy stressed in the memo. “This is the next stage of work that is already underway.”
