The pressure that exists in the markets in the face of the new international panorama has caused even large companies to resort to strategies that allow them to save something in their budget. In these types of situations, cuts are a viable option. AND Nike is executing it, with the announcement of a new round of layoffs that will affect approximately 1,400 company employeesto reinforce other aspects in its operation.
This Thursday, through a statement, Nike executive vice president and chief operating officer, Venkatesh Alagirisamy, stated that The cut of 1,400 jobs was part of the restructuring strategy largest of the renowned sports company, called “Bag Now”.
According to the manager, the objective of this decision is to reorganize its technology team, modernize the manufacturing of its Air, move some of its Instruct footwear operations and integrate its materials supply chain into its footwear and clothing supply chain teams.
“Taken together, these changes will mean a reduction of approximately 1,400 jobs in global operations, most in technology“Alagirisamy wrote. “These reductions are very difficult for both the colleagues directly affected and the teams around them.”
The layoffs affect employees in North America, Asia and Europe, and represent less than 2% of the company’s global workforce.. According to a Nike spokesperson, the layoffs are intended to better position the organization for the pace of the sport and accelerate its growth.
“This is not a new direction,” Alagirisamy said. “It is the next phase of work that is already underway.”
Nike added that Affected employees will be notified starting Thursday when the announcement was made.
“These changes seek to simplify the company and make it more agile,” Alagirisamy said. “Looking ahead, this means simplifying some aspects of our operation, using more advanced automation where it allows us to work better, and building an even stronger end-to-end unsuitable for future growth.”
Its CEO, Elliott Hill, who had retired in 2020 and was reappointed as the company’s CEO in October 2024, has been working for revitalize Nike after years of declining sales. Despite the progress and efforts in recent years, Hill’s return has not been without difficulties.
In its fiscal third quarter earnings report, released last month, The retail chain warned that sales will continue to fall for the rest of the yearmainly due to an expected 20% drop in China during the exact quarter.
In January, Nike announced the layoffs of 775 employees, mainly in its distribution centers in the United States, due to the acceleration of automation in its processes. At the time, the company stated that these cuts are part of its goal of returning to profitable long-term growth.
These layoffs come 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 restructure the business.
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