Roughly 1,400 people across Nike’s Global Operations team will be laid off, the company announced Thursday.
In a memo to employees, Chief Operating Officer Venkatesh Alagirisamy said the cuts will primarily affect Nike’s technology division and span North America, Asia and Europe, representing just under 2% of the company’s global workforce.
“This is not a new direction,” Alagirisamy wrote. “It is the next phase of the work already underway.”
The announcement follows a series of recent job cuts as Nike restructures its operations.
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In January, the company said it would cut 775 jobs as part of an automation push at distribution centers.
In February 2024, Nike announced plans to reduce its workforce by about 2%, or more than 1,600 employees, and a few months later, in August, said it would cut less than 1% of corporate staff as part of a broader turnaround effort under CEO Elliott Hill.
Shares rose about 0.5% in after-hours trading, though Nike stock has lost more than half its value over the past three years.
According to Alagirisamy’s memo, the layoffs are aimed at streamlining supply chains for materials, footwear and apparel, and centralizing technology operations in two hubs: Beaverton, Oregon, and the Nike India Technology Center.
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Nike also plans to move some Converse manufacturing and engineering operations closer to factory partners.
“These changes are meant to make the company less complex and more responsive,” Alagirisamy said. “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.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 44.78 | -0.90 | -1.97% |
Hill, who became CEO in 2024, has pledged to refocus the Nike brand on core sports, such as running and soccer, while accelerating new product launches.
Nike forecast a 2% to 4% drop in sales this quarter, with China, a key market, expected to decline about 20%, the company said.
Nike referred FOX Business to Alagirisamy’s memo when asked for comment.
FOX Business’ Eric Revell and Reuters contributed to this report.
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