Nike has laid off a “limited number” of employees on its Global Tech team, a company spokesperson confirmed to Retail Dive Tuesday.
The departures were the result of changes announced last week, which included the movement of some systems, applications and products work to managed services.
“While this is the right business decision, it has impacted some teammates, which we don’t take lightly,” the spokesperson said in a statement. Nike did not respond to questions about exactly how many teammates were impacted, when they were notified and whether this was the only downsizing occurring at the company.
Last year, Nike laid off about 2% of its total workforce as part of a cost-savings plan that hit in two different phases.
The most recent tech layoffs come amid a broader turnaround strategy under new CEO Elliott Hill, who just took over the top spot in October last year. He has already made a number of changes to Nike’s leadership team, including a recent move that saw 26-year veteran Heidi O’Neill retire. The retailer also named a new president of the Nike brand, elevated footwear vice president Phil McCartney to chief innovation, design and product officer, and named a chief growth initiatives officer.
Nike’s turnaround so far has focused on rebuilding its relationships with wholesale partners, which were damaged by Nike’s strong emphasis on DTC sales in recent years, and rightsizing its footwear assortment, which leaned too heavily on styles like the Air Force 1 and Air Jordan.
While the brand is still a strong performer with teens, it lost share in the past year or so as younger brands like On, Alo Yoga and Vuori gained steam. A new venture with Kim Kardashian’s Skims brand, announced in February, could help in making the brand top of mind for shoppers. The retailer also just announced participation in a Gen Z-focused rotating store concept with Urban Outfitters, which will feature more than 150 apparel and footwear items in select stores and online.
