- Nike plans to cut nearly 1,400 jobs to streamline operations and boost efficiency
- Layoffs will focus on global operations and technology roles across key regions
- This follows earlier cuts of about 775 jobs linked to automation efforts
Struggling sportswear giant Nike has announced plans to lay off nearly 1,400 employees as part of an effort to streamline operations and improve efficiency, according to a company memo, Reuters reported.
Chief Operating Officer Venkatesh Alagirisamy informed staff that the layoffs — affecting less than 2% of Nike's global workforce — will largely target roles in global operations, particularly in technology, across North America, Asia and Europe.
The move marks the latest in a series of workforce reductions at Nike. Earlier this year, the company eliminated about 775 positions as part of a broader push toward automation. Despite the cuts, Nike's shares edged up about 0.5% in after-hours trading.
However, the company's stock has declined sharply over the past three years, losing more than half its value amid growing competition from brands such as On, Hoka and Anta.
Chief Executive Officer Elliott Hill, who took charge in 2024, has pledged to refocus the brand on core categories like running and football, while accelerating the launch of innovative products.
Nike's margins have remained under pressure as the company resorts to heavy discounting to clear excess inventory.
Its efforts to introduce standout new sneakers have delivered mixed results, although the Vomero 18 shoe emerged as a rare success, generating $100 million in sales within three months of its release.
The company has projected a 2% to 4% decline in sales for the current quarter, with China—its key market—expected to see a sharp 20% drop.
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Morningstar analyst David Swartz said the layoffs suggest deeper underlying issues.
“Nike should be further along in its recovery by now,” he said, adding that the company may have become overstaffed, particularly in technology, as previous management attempted to address challenges by expanding headcount.
Echoing similar views, M Science analyst Drake MacFarlane said the development was not unexpected, noting, “It's a big headline but not surprising.”
According to the memo, the restructuring aims to better integrate Nike's supply chains across materials, footwear and apparel, while consolidating technology operations around its headquarters in Beaverton, Oregon, and its India Technology Center.
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