Nike Announces Layoffs Amid Sales Struggles

Nike revealed on Thursday that it will eliminate around 1,400 positions within its global operations sector as part of an initiative to improve workflows. This decision comes as the sportswear giant grapples with ongoing sales challenges.

The company’s Chief Operating Officer, Venkatesh Alagirisamy, communicated in a memo that the majority of job cuts will occur in technology teams, particularly in North America and Europe. The layoffs account for nearly 2% of Nike’s total workforce.

Nike’s shares have seen a steep decline, losing more than half their value over the past three years. The competition, particularly nimble brands such as On, Hoka, and Anta, have been taking away market share. In an effort to regain focus, CEO Elliott Hill, who stepped into the role in 2024, has committed to returning the brand’s emphasis on core sports like running and soccer, along with accelerating the introduction of innovative footwear.

However, progress seems limited. Nike has projected a sales decline of between 2% and 4% for this quarter. The situation in China is particularly concerning, with expectations of a 20% drop in sales from the last quarter.

In his memo, Alagirisamy noted that the layoffs aim to facilitate better integration of supply chains across materials, footwear, and apparel. The company will concentrate its tech operations in two main facilities: its headquarters in Beaverton, Oregon, and the Nike India Technology Center.

In addition, Nike is shifting some manufacturing for its struggling Converse brand closer to its partner factories to better align with brand demands moving forward.

Nike has implemented various cost-saving measures in recent years, including a recent layoff of 775 employees aimed at enhancing automation initiatives.