Nike announced on Thursday that it will lay off approximately 1,400 employees across its Global Operations team, primarily impacting the technology division in North America, Asia, and Europe. This figure represents just under 2% of Nike’s global workforce, according to a memo from Chief Operating Officer Venkatesh Alagirisamy [1]. The layoffs are part of a broader restructuring effort, following previous job cuts including 775 positions in January 2024 related to automation at distribution centers, a February 2024 announcement to reduce the workforce by about 2% (over 1,600 employees), and an August cut affecting less than 1% of corporate staff [1].
Alagirisamy stated that the current layoffs are the next phase of ongoing efforts to streamline operations, with a focus on centralizing technology in Beaverton, Oregon, and the Nike India Technology Center. The company also plans to relocate some Converse manufacturing and engineering operations closer to factory partners. These changes aim to simplify operations, increase automation, and build a stronger foundation for future growth [1].
Market reaction to the announcement was modest, with Nike shares rising about 0.5% in after-hours trading. However, the stock has lost more than half its value over the past three years [1]. Nike has forecast a 2% to 4% decline in sales for the current quarter, with a notable 20% expected drop in China, a key market [1]. CEO Elliott Hill, who took the role in 2024, has committed to refocusing the brand on core sports such as running and soccer, and accelerating new product launches [1].
CONCLUSION
Nike’s latest round of layoffs underscores the company’s ongoing efforts to streamline operations and adapt to challenging market conditions. While the immediate market response was muted, the company faces continued sales pressure, particularly in China. Leadership remains focused on operational efficiency and brand refocusing to drive future growth.