By Nicholas P. Brown
April 23 (Reuters) - Nike said on Thursday it is laying off about 1,400 global operations employees in an effort to streamline workflows as the struggling sportswear company fights through a years-long sales slump.
In a memo to employees on Thursday, Chief Operating Officer Venkatesh Alagirisamy said Nike would reduce headcount mainly in North America and Europe, and mainly on its technology team. The layoffs account for a little less than 2% of Nike's global workforce.
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.
Nike will move some manufacturing operations for its struggling Converse brand closer to Nike's factory partners, to "better support the brand’s needs going forward," Alagirisamy said.
Nike has conducted several rounds of layoffs in recent years, most recently axing 775 jobs to speed up automation.
(Reporting by Koyena Das in Bengaluru; Editing by Vijay Kishore, Rod Nickel)
