Nike is set to lay off around 1,400 employees globally as part of a broader effort to streamline operations and improve efficiency amid a prolonged sales slowdown.
The job cuts, announced in an internal memo by Chief Operating Officer Venkatesh Alagirisamy, will primarily impact roles in technology and global operations across North America, Asia, and Europe. The reductions account for just under 2 percent of Nike’s global workforce.
This marks the latest in a series of workforce reductions by the company, following the elimination of 775 roles earlier this year as Nike accelerates automation and restructuring efforts.
Despite the cuts, Nike’s shares edged up by around 0.5 percent in after-hours trading, suggesting cautious optimism among investors in the company’s restructuring strategy.
Nike has been grappling with declining sales and intensifying competition from emerging brands such as On, Hoka, and Anta, which have been gaining market share and retail visibility.
Since taking over in 2024, CEO Elliott Hill has focused on repositioning the brand around its core sports categories, including running and football, while pushing for faster product innovation.
However, progress has been uneven. The company has relied heavily on discounts to clear excess inventory, putting pressure on margins, while new product launches have struggled to consistently resonate with consumers. One notable exception has been the Vomero 18 running shoe, which generated $100 million in sales within three months of its release.
Nike has also flagged ongoing challenges in key markets, particularly China, where sales are expected to decline by around 20 percent in the current quarter.
Analysts suggest the latest layoffs indicate deeper structural issues. Morningstar analyst David Swartz noted that Nike’s recovery appears slower than expected, adding that the company may have become overstaffed in recent years.
The restructuring is also aimed at improving supply chain integration across materials, footwear, and apparel, while consolidating technology operations into two main hubs: its headquarters in Beaverton, Oregon, and the Nike India Technology Center.
Nike has forecast a 2 to 4 percent drop in sales for the current quarter, underscoring the scale of the challenge as it works to regain momentum in a highly competitive global market.
