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Nike has announced roughly 1,400 layoffs as part of its restructuring efforts. It reflects broader challenges in the retail and sportswear sector while aiming to streamline operations and improve efficiency. The layoffs affect employees across North America, Asia, and Europe and represent less than 2% of the company’s total global headcount.
In a memo to employees, Chief Operating Officer Venkatesh Alagirisamy said the cuts will primarily affect Nike’s technology division and span North America, Asia, and Europe, representing just under 2% of the company’s global workforce.
"This is not a new direction," Alagirisamy wrote. "It is the next phase of the work already underway."
According to Alagirisamy’s memo, the layoffs are aimed at streamlining material, footwear, and apparel supply chains and centralizing technology operations in two hubs: Beaverton, Oregon, and the Nike India Technology Center. Nike also plans to move some Converse manufacturing and engineering operations closer to factory partners.
Affected employees will be notified beginning Thursday, Nike added.
In January, the company said it would cut 775 jobs as part of an automation push at distribution centers. In February 2024, Nike announced plans to reduce its workforce by about 2%, or more than 1,600 employees, and a few months later, in August, said it would cut less than 1% of corporate staff as part of a broader turnaround effort under CEO Elliott Hill.
"These changes are meant to make the company less complex and more responsive," Alagirisamy said. "As we look ahead, that means simplifying parts of how we operate, using more advanced automation where it helps us work better, and building an even stronger end-to-end foundation for future growth."
Hill, who became CEO in 2024, has pledged to refocus the Nike brand on core sports, such as running and soccer, while accelerating new product launches.
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Nike forecast a 2% to 4% drop in sales this quarter, with China, a key market, expected to decline about 20%, the company said. A Nike spokesperson said the layoffs are about better positioning the organization for the current pace of sports and accelerating its growth. Those layoffs came on top of a round of cuts last summer that affected less than 1% of Nike’s corporate staff as part of the company’s efforts to realign the business.
Amid rising competition and shifting consumer trends, Nike faces a critical transition phase. Its restructuring efforts may streamline operations, but long-term success will depend on innovation, digital growth, and adapting to evolving global market dynamics while maintaining brand strength.
Nike Shares rose about 0.5% in after-hours trading following the news, though its stock has lost more than half its value over the past three years.
