Nike cuts 1,400 roles in second round of layoffs this year
Nike stated about 1,400 layoffs, primarily in its software department.
The organization mentioned the job cuts are part of its efforts to better position the corporation for future growth as part of its “Win Now” strategy.
The layoffs come after 775 Nike roles were eliminated in January.
Nike revealed a fresh round of layoffs Thursday affecting approximately 1,400 employees across the organization, mostly concentrated in its software department.
In a note from COO Venkatesh Alagirisamy, the business remarked the layoffs were part of Nike’s broader “Win Now” turnaround strategy aiming to reshape its tech team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.
“Collectively, these changes will result in a reduction of approximately 1,400 roles in global operations, with the majority in technology,” Alagirisamy wrote. “These reductions are very hard for the teammates directly affected and for the teams around them, too.” This also touches on aspects of bear market.
A Nike spokesperson remarked the layoffs are about better positioning the organization for the current pace of sports and accelerating its growth. The layoffs affect employees across North America, Asia and Europe and represent less than 2% of the company’s total global head count.
“This is not a latest direction,” Alagirisamy wrote. “It is the next phase of the work already underway.”
Affected employees will be notified beginning Thursday, Nike added.
CEO Elliott Hill has been working to turn Nike around after years of slumping sales. While Hill has made some initial progress, it’s come with some bumps in the road.
Nike stated 775 job cuts in January, primarily at its U.S.-based distribution centers, due to the company’s work in accelerating its employ of automation. At the time, the organization commented the cuts are part of Nike’s goal to return to “long-term, profitable growth.”
Those layoffs came on top of a round of cuts last summer that affected less than 1% of Nike’s corporate staff as part of the company’s efforts to realign the business.
In its third fiscal quarter earnings report last month, the retailer warned that sales will continue to fall for the rest of the year, primarily led by an anticipated 20% decline in China during the current quarter.
— CNBC’s Jessica Golden contributed to this report.