Nike is in the midst of layoffs, again.
The activewear giant is cutting less than 1% of its corporate team as part of a broader shift under CEO Elliott Hill. Hill has made a number of structural shifts at Nike since taking over the top spot in October last year. Most recently, the company in June announced it would organize its teams around key sports instead of categories like women’s, men’s and kids. Leaders were identified to head up those teams in July, but the shift has also led to cuts.
"As we shared in Q4 earnings, Nike, Inc. is in the midst of a realignment. The moves we’re making are about setting ourselves up to win and create the next great chapter for Nike,” a spokesperson said via email. “This new formation is built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer, and to give us the space to create what only Nike can."
The retailer laid off a small number of tech employees in May this year and cut more than 1,600 employees at the start of 2024. Since Hill has taken over leadership of the activewear giant, the executive has also made sweeping changes to Nike’s leadership team and structure, which has led to several long-time executive departures, as well as the return of some Nike veterans.
As it looks to turn things around, Nike is battling sales declines and the fallout of a DTC-first strategy that left wholesale partners feeling abandoned. Hill has vowed to right Nike’s relationships with retail partners and correct the flow of key footwear franchises like Dunk and Air Force 1.
