As it works to recover from a prolonged sales slowdown, sportswear giant Nike is accelerating a global round of layoffs and organizational restructuring. The company announced plans to cut approximately 1,400 roles, with the majority concentrated in its technology division.
Summary
- Nike announced approximately 1,400 job cuts globally, primarily impacting its technology division
- The move is part of its “Win Now” strategy, aimed at simplifying and streamlining operations
- Restructuring includes manufacturing optimization, supply chain integration, and partial Converse realignment
- Automation and footprint consolidation are expected to improve speed and cost efficiency
- The overhaul comes amid slowing sales and continued weakness in the Chinese market
The latest measures represent the next phase of Nike’s “Win Now” strategy, led by Chief Operating Officer Venkatesh Alagirisamy. The cuts affect global operations across North America, Europe, and Asia, accounting for less than 2% of the company’s total workforce.
In an internal memo, Alagirisamy stated: “Collectively, these changes will result in a reduction of approximately 1,400 roles in global operations, with the majority in technology. These reductions are very hard for the teammates directly affected and for the teams around them, too.”
He added, “Over the coming months, we will continue evolving Global Operations to better serve athletes and the business with more speed, simplicity, and precision. This is not a new direction—it is the next phase of the work already underway.”
Tech-Led Restructuring and Footprint Consolidation
At the core of this transformation is a reorganization of Nike’s technology function. In recent years, the company has restructured its leadership, including eliminating the chief technology officer role and integrating the tech organization under operations. The move is designed to streamline decision-making and reduce complexity.
At the same time, Nike is reallocating resources by consolidating development and technical capabilities into key hubs. The goal is to accelerate technology deployment while improving cost efficiency.
Manufacturing and Supply Chain Realignment
The restructuring also extends to manufacturing. Nike is optimizing staffing and processes across its Air Manufacturing Innovation facilities, while repositioning certain Converse footwear manufacturing and engineering functions closer to factory partners.
In parallel, the company is integrating its materials sourcing operations into its broader footwear and apparel supply chain teams. By unifying previously fragmented functions, Nike aims to build a more agile and cohesive operating model, enhancing overall speed and flexibility.
Reducing Complexity Through Automation and Efficiency
Underlying these changes is a broader effort to address organizational complexity. Nike is leveraging automation and simplifying workflows to create a more responsive and efficient structure.
Alagirisamy noted: “These changes are meant to make the company less complex and more responsive. As we look ahead, that means simplifying parts of how we operate, using more advanced automation where it helps us work better, and building an even stronger end-to-end foundation for future growth.”
Sales Pressure and China Slowdown
The urgency behind the restructuring reflects mounting pressure on performance. While CEO Elliott Hill has been working to stabilize the business, Nike expects sales declines to continue through the remainder of the year.
China, once a key growth driver, remains a major concern, with the company projecting an approximate 20% decline in the market for the current quarter.
There have been isolated product successes. The Vomero 18 running shoe generated around $100 million in revenue within its first three months. However, such wins have yet to materially shift the broader sales trajectory.
An Ongoing Industry-Wide Shift
Nike’s latest layoffs follow earlier cuts this year, including approximately 700 roles tied to U.S. distribution center consolidation in January. The company has also undertaken multiple rounds of organizational adjustments in recent years.
Similar restructuring trends are emerging across the industry. German sportswear company Puma has outlined plans to cut around 900 corporate roles globally by the end of 2026 as part of a broader transformation under CEO Arthur Hoeld, aimed at addressing slowing sales and weakening brand momentum.
Together, these developments signal a broader structural shift within the industry. Beyond cost-cutting, companies are rethinking their operating models across technology, manufacturing, and supply chains.
For Nike, the objective is clear: a simpler, faster, and more agile organization built for long-term growth.
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