In a continued effort to restructure its operations, Nike has announced a fresh round of layoffs affecting around 1,400 employees worldwide. Most of the job cuts will take place in the company’s technology department.
This marks the second major round of layoffs this year, following the exit of about 775 employees in January. The move is part of Nike’s “Win Now” strategy, which focuses on reshaping its technology teams and modernizing operations across departments.
The strategy includes revamping the tech division, upgrading Air manufacturing processes, shifting some Converse Footwear operations, and integrating materials supply chain functions into footwear and apparel supply teams. COO Venkatesh Alagirisamy said these changes will result in a reduction of around 1,400 roles globally, with most cuts coming from the tech segment.
Layoffs to impact North America, Asia, Europe employees
The layoffs will affect staff across North America, Asia, and Europe. However, the total reduction accounts for less than 2% of the company’s global workforce. A company spokesperson said the decision is aimed at aligning the organization with the current pace of sports and supporting faster growth.
CEO Elliott Hill is leading the turnaround plan after years of declining sales. While some progress has been made, the company has faced challenges along the way. Last summer, Nike had also cut less than 1% of its corporate workforce as part of earlier restructuring efforts.
In its third fiscal quarter earnings report last month, Nike warned of continued sales decline through the year, mainly due to an expected 20% drop in China during the current quarter. Following the latest announcement, Nike’s shares rose 0.5% in extended trading on Thursday. However, the stock has declined by 30% so far this year.
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