Nike has announced a new round of layoffs, impacting approximately 1,400 employees globally, primarily within its technology division. This marks the company's second major workforce reduction this year as it continues efforts to streamline operations and reverse a sales slump.
What happened
Nike's Chief Operating Officer, Venkatesh Alagirisamy, confirmed the job cuts in a memo made public on Thursday. The layoffs are part of Nike's "Win Now" action plan to simplify the company's structure and enhance responsiveness. Affected employees, located across North America, Europe, and Asia, will be notified in the coming weeks. This follows an earlier announcement in January regarding nearly 800 job cuts at distribution centers.
How many employees affected
Approximately 1,400 employees are affected in this latest round, representing just under 2% of Nike's global workforce. In January, Nike also announced plans to lay off nearly 800 employees at its distribution centers.
Why layoffs happened
The layoffs aim to make the company less complex and more responsive, according to COO Venkatesh Alagirisamy. They are part of a broader strategy to strengthen Nike's foundation and achieve long-term profitable growth, following a 10 percent drop in revenue for its 2025 fiscal year compared to the previous year. The restructuring involves streamlining supply chains, centralizing technology operations, and accelerating the use of advanced technology and automation.
Company background
Nike is a global sportswear company. Elliott Hill, who became CEO in 2024, has pledged to refocus the brand on core sports and accelerate new product launches. The company has undergone several workforce reductions, including in February and August of 2024.
Industry impact
Nike's restructuring reflects a trend of companies adapting to market changes and seeking operational efficiencies. The focus on simplifying operations, centralizing technology, and increasing automation suggests a strategic shift to improve profitability and responsiveness. Nike has forecast a 2% to 4% drop in sales for the current quarter.
What's next
The layoffs will be carried out in the coming weeks. Nike plans to continue its "Win Now" action plan, which includes further steps to strengthen its foundation and build a model for future growth, including greater reliance on advanced automation.