Nike Announces over 1,000 Layoffs As Sales Slump
Nike announced it will be enacting roughly 1,400 layoffs globally as it continues to suffer an ongoing downturn in sales.
Shared with employees on Thursday, the memo from Chief Operating Officer Venkatesh Alagirisamy said that the company will be laying off employees in North America and Europe, with an emphasis on its technology team.
"You never want to have to go through any sort of layoffs, but to re-center the company, we're doing some of that," CEO Elliott Hill said in an interview earlier this year.
The layoffs represent "less than 2% of Nike's global workforce," per the New York Post.
Nike shares have lost more than half their value in the last three years, as nimbler competitors such as On, Hoka and Anta have won more shelf space. CEO Elliott Hill, who took the helm in 2024, has vowed to re-center the Nike brand on core sports such as running and soccer, and bring new and innovative shoes to market quickly.
But results have been slow, and Nike has forecast a 2% to 4% drop in sales in the current quarter. China, its primary trouble spot, is expected to fall 20% in the quarter, Nike has said.
The layoffs will allow Nike to better integrate its supply chains for materials, footwear and apparel, and focus its technology operations in two main hubs – its Beaverton, Oregon, headquarters, and the Nike India Technology Center – according to Alagirisamy's memo.
According to the New York Times, Nike told investors in March that it expected sales to fall this year as the brand struggles to increase sales in China.
"The cuts will also affect staffing in Nike's factories for Air, the company's proprietary cushioning system," added the Times. "Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams."
Key Insights
- This topic is currently trending
- Experts are closely monitoring developments
- It may impact future decisions
