Dive Brief:
- As part of its Win Now turnaround strategy, Nike is cutting about 1,400 jobs across its global operations, Chief Operating Officer Venkatesh Alagirisamy wrote in a memo posted to Nike’s website. The majority of the layoffs will impact Nike’s tech department.
- The retailer is consolidating its technology footprint and will now focus on two hubs: the Philip H. Knight Campus and the Nike India Technology Center. Nike is also streamlining its tech department in order to move faster.
- “At its core, these shifts are about building a Global Operations organization that is more focused, more integrated with the business, and better built for the pace of sport,” Alagirisamy said.
Dive Insight:
A year after laying off a “limited number” of tech employees, Nike is now cutting 1,400 roles, with the majority in tech. The decision comes a few months after the company axed its chief technology officer and nested the department under Alagirisamy as chief of operations.
“Over the coming months, we will continue evolving Global Operations to better serve athletes and the business with more speed, simplicity, and precision,” Alagirisamy wrote Thursday. “Some of that work is happening now and more will continue over time as we align our teams, capabilities, and footprint to the future needs of the company.”
The restructure will lead to changes across team structures and work locations, in addition to the layoffs. The company is streamlining its Air Manufacturing Innovation facilities, including adjusting staffing levels, and moving some footwear manufacturing and engineering resources for Converse to be closer to factory partners. Nike is also integrating its Materials Supply Chain into its Footwear and Apparel Supply Chain teams.
Impacted employees were notified by HR starting Thursday and will receive “support” through the transition.
Alagirisamy stressed that these moves were part of the retailer’s long-term Win Now strategy and simply the “next phase” of its efforts. Among other things, the retailer is aiming to optimize its supply chain footprint, speed up tech deployment, strengthen partner relationships and invest in upskilling.
“These changes are meant to make the company less complex and more responsive,” Alagirisamy said. “As we look ahead, that means simplifying parts of how we operate, using more advanced automation where it helps us work better, and building an even stronger end-to-end foundation for future growth.”
It’s the latest in a series of restructurings and layoffs since CEO Elliott Hill took over in October 2024. In September last year, Nike laid off less than 1% of its staff as it restructured the company around key sports. The retailer in May last year also reshuffled its leadership team, separating out Heidi O’Neill’s responsibilities as president of consumer, product and brand into three distinct areas. O’Neill left the business as a result and just this week was named CEO at Lululemon.
Layoffs have not been limited to Hill’s tenure. Months prior to Hill’s arrival in the chief spot, Nike cut 1,600 jobs as part of a cost-savings initiative.
