Nike announced on Thursday that it will be laying off approximately 1,400 employees in order to streamline workflows. The job cuts, mainly in technology across North America, Asia, and Europe, account for less than 2% of the global workforce.
This move follows a series of layoffs at Nike, including the elimination of 775 roles in January aimed at speeding up automation. Shares rose by about 0.5% in after-hours trading following the announcement. Over the past three years, Nike shares have lost more than half their value as competitors like On, Hoka, and Anta gain market share.
CEO Elliott Hill, who took over in 2024, has pledged to refocus the brand on core sports such as running and soccer, and to introduce new innovative footwear. However, margins remain under pressure due to steep discounts used to clear old inventory and inconsistent sales of new, high-profile sneakers.
Last year’s Vomero 18 shoe was an exception, reaching $100 million in sales within three months. Nike forecasts a 2% to 4% drop in sales for the current quarter, with China, its main issue area, expected to see a 20% decline.
Analysts view these layoffs as indicative of deeper problems at Nike. David Swartz, an analyst from Morningstar, suggests that the company may be overstaffed and that previous management’s approach of adding staff in technology has not been effective. Drake MacFarlane, an analyst with M Science, noted that while headcount adjustments were anticipated, they are still seen as significant.
The cuts will enable Nike to integrate its supply chains for materials, footwear, and apparel more effectively and concentrate its technology operations at the Beaverton, Oregon headquarters and the Nike India Technology Centre.