Nike said it will cut around 1,400 jobs globally as part of a restructuring effort aimed at improving efficiency and addressing ongoing business challenges.
The layoffs, announced in an internal memo by Chief Operating Officer Venkatesh Alagirisamy, will primarily affect roles in global operations, particularly in technology, across North America, Europe and Asia. The reductions account for just under 2% of Nike’s global workforce.
Part of Ongoing Cost-Cutting Efforts
The move follows earlier job cuts, including the elimination of 775 roles in January, as the company seeks to streamline operations and accelerate automation.
Nike said the latest reductions are intended to simplify workflows, better integrate supply chains for materials and products, and centralize technology operations in key hubs, including its headquarters in Beaverton, Oregon, and its India Technology Center. A company spokesperson declined to provide details on expected cost savings.
Pressure From Slowing Sales and Competition
The restructuring comes as Nike faces a prolonged sales slowdown and increasing competition from rival brands such as On Running, Hoka and Anta, which have gained market share in recent years.
Nike’s stock has lost more than half its value over the past three years, reflecting investor concerns about growth and execution.
The company has forecast a decline in quarterly sales of between 2% and 4%, with China – one of its key markets- expected to see a drop of about 20%. Margins have also come under pressure as Nike relies on discounts to clear excess inventory.
Turnaround Strategy Still Taking Shape
Chief Executive Officer Elliott Hill, who took over in 2024, has focused on repositioning the brand around core sports categories such as running and soccer, while accelerating product innovation.
Hill has said the company’s recovery depends on delivering “something new to the consumer week after week,” though recent product launches have had mixed impact.
One exception has been the Vomero 18 running shoe, which generated $100 million in sales within three months of its release.
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Analysts See Deeper Challenges
Industry analysts say the latest layoffs signal broader structural issues within the company. “That problems run deeper than originally thought,” said David Swartz, adding that “Nike should be further along in its recovery by now.”
Swartz noted that the company may have expanded its workforce too aggressively in recent years, particularly in technology roles. “It’s a big headline but not surprising,” said Drake MacFarlane, pointing to earlier signals from Nike that workforce adjustments were likely.
The layoffs mark another step in Nike’s broader restructuring as it attempts to regain momentum in a competitive and rapidly evolving sportswear market.
Investors will be watching closely to see whether cost-cutting measures and renewed focus on product innovation can stabilize performance and restore growth in the coming quarters.
