Nike Announces Second Phase of "Win Now" Turnaround, Cutting 1,400 Jobs
Nike Inc. announced on Thursday plans to lay off approximately 1,400 employees as part of the second phase of its "Win Now" turnaround strategy. The job cuts affect less than two percent of the company's total global headcount and will impact roles in North America, Asia, and Europe, with the majority concentrated in the technology department.
The layoffs represent "the next phase of the work already underway" rather than "a new direction."
Restructuring Actions
The layoffs are part of a broader restructuring plan that includes several specific operational changes:
- Technology Team Consolidation: Nike will reshape its technology team by consolidating its technology footprint and focusing operations on two primary hubs: the Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center.
- Air Manufacturing Modernization: The company will modernize work at its Air Manufacturing Innovation facilities in Beaverton, Oregon; St. Louis, Missouri; and Vietnam by streamlining processes and adjusting staffing.
- Converse Operations: Converse will move some footwear manufacturing and engineering resources closer to factory partners.
- Supply Chain Integration: Nike will integrate materials supply chain work into its footwear and apparel supply chain teams.
Company Statements
Chief Operating Officer Venkatesh Alagirisamy wrote in a note to employees that the reductions are "very hard for the teammates directly affected and for the teams around them." He emphasized that the layoffs represent "the next phase of the work already underway" rather than "a new direction."
A Nike spokesperson stated that the layoffs aim to better position the organization for the current pace of sports and accelerate growth. Affected employees will begin receiving notifications on Thursday.
Background and Financial Context
The company has undertaken several rounds of job reductions in recent years:
- January 2025: Nike cut approximately 775 jobs, primarily at its U.S. distribution centers, due to increased automation.
- Last Summer: The company cut less than one percent of its corporate staff as part of a business realignment.
- Earlier This Year: Converse also conducted layoffs, though exact numbers were not disclosed.
In its third fiscal quarter earnings report for fiscal 2026, released in March, Nike reported a 35 percent drop in net income, with net sales flat year-over-year. The company warned that sales would continue to fall for the rest of the year, including an anticipated 20 percent decline in China during the current quarter.