People walk past a Nike store on April 2, 2025 in New York City.
Kylie Cooper | Reuters
nike announced new layoffs Thursday, affecting about 1,400 employees across the organization, most of them concentrated in the technology sector.
In a memo from COO Venkatesh Alagirisamy, the company said the layoffs are part of Nike’s broader “Win Now” turnaround strategy to reorganize its technology team, modernize Air manufacturing, relocate portions of its Converse footwear business, and integrate material supply chain operations into its footwear and apparel supply chain teams.
“Together, these changes will result in the elimination of approximately 1,400 roles in global operations, the majority of which will be in the technology sector,” Alagirisamy wrote. “These cuts are extremely difficult for both the directly affected teammates and the teams around them.”
A Nike spokesperson said the job cuts are to better position the organization to match the current pace of the sport and accelerate growth. The layoffs affect employees in North America, Asia and Europe, representing less than 2% of the company’s total global workforce.
“This is not a new direction,” Alagirisamy wrote. “It is the next stage of work that is already underway.”
Affected employees will be notified starting Thursday, Nike added.
CEO Elliott Hill has been working to turn Nike around after years of declining sales. Hill has made some early progress, but the path has come with some bumps.
Nike announced 775 job cuts in January, primarily at its U.S.-based distribution centers, citing efforts to increase its use of automation. At the time, the company said the layoffs were part of Nike’s goal to return to “long-term, profitable growth.”
These layoffs come on top of a series of layoffs made last summer as part of the company’s restructuring efforts, which affected less than 1% of Nike’s workforce.
In its third-quarter earnings report last month, the company warned that sales would continue to decline for the rest of the year, mainly due to an expected 20% decline in China this quarter.
—CNBC’s Jessica Golden contributed to this report.
