Key Takeaways:
Nike Inc. will cut approximately 1,400 jobs, or less than 2 percent of its global workforce, as the sportswear giant accelerates its restructuring efforts to combat a multi-year sales slump and intense competition. The layoffs primarily target global operations and technology roles across North America, Europe, and Asia.
"Across the company, we have been taking deliberate steps to strengthen our foundation, sharpen how we compete, and build a model designed to deliver long-term profitable growth," Chief Operating Officer Venkatesh Alagirisamy said in a memo to employees. The changes are part of the company's "Win Now" turnaround plan aimed at simplifying operations and increasing efficiency.
The announcement comes as Nike grapples with weak financial performance. In the third quarter of fiscal 2026, the company's net income fell 35 percent to $520 million, with net sales flat at $11.3 billion. Nike has lost more than half its stock value over the past three years as rivals like Hoka, On, and Anta gain market share.
For the current quarter, Nike projects a sales decline between 2 percent and 4 percent, with a significant 20 percent drop anticipated in the crucial China market. The job reductions follow a previous cut of nearly 800 positions in January related to the consolidation of its U.S. distribution centers.
The restructuring will reshape Nike’s technology team by consolidating its footprint into two main hubs in Beaverton, Oregon, and the Nike India Technology Center. It will also modernize its Air Manufacturing Innovation facilities and move some of Converse's footwear manufacturing and engineering resources closer to factory partners.
Morningstar analyst David Swartz said the layoffs signal “that problems run deeper than originally thought.” He added that Nike may be overstaffed "as prior management tried to solve problems by adding people, especially in technology.”
The continued job cuts indicate the depth of the challenge facing CEO Elliott Hill, who took over in 2024 with a promise to refocus the brand on innovation. While the company saw a success with the Vomero 18 shoe, which generated $100 million in sales within three months, consistent new hits have been elusive. The latest move to streamline operations underscores the urgency to regain momentum and investor confidence. Investors will be watching the company's next earnings report for signs that the turnaround strategy is gaining traction.
This article is for informational purposes only and does not constitute investment advice.
