Nike announced on Thursday, August 28, that it plans to reduce its corporate workforce in another round of layoffs by 1 percent as part of CEO Elliott Hill’s efforts to realign team structures across the business.
“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,” the company stated in a media release. “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.”
On the fourth quarter analyst call in June, Hill raised the possibility of layoffs as he said changes were being made to organize teams around sports rather than being segmented by women’s, men’s and kids under former CEO John Donahoe.
“Instead of a men’s, women’s and kids construct, Nike, Jordan and Converse teams will now come to work every day with a mission to create the most innovative and coveted product, footwear, apparel and accessories for the specific athletes they serve,” said Hill on the call.
Hill said the company would organize into “sport-obsessed teams,” which would “drive a relentless flow of innovative product across all three of the brands.”
In an internal memo obtained by CNBC this week, Nike stated that as part of the changes, some staff will assume a new position or level, report to a new manager or join a new team. Staff will be notified by September 8 if they are impacted. A Nike team meeting is then scheduled for September 10, with new roles taking effect on September 21.
“To make space for these conversations, corporate employees, based in an office location in the U.S. and Canada, will work remotely next week, unless otherwise informed by your leader,” the memo said.
Hill, who took over as CEO in October 2024, has already begun reshuffling leadership, promoting Amy Montagne in May to president and splitting responsibilities for direct oversight. Hill also divided the president’s responsibilities across functions, giving him more direct oversight of product development, marketing and growth initiatives, with new leaders reporting directly to him.
Hill’s “Win Now” plan, announced earlier this year, aims to revitalize Nike’s culture, brand and product portfolio. He identified the U.S., UK and China as three key countries for the company’s turnaround, with New York, Los Angeles, London, Beijing, and Shanghai as the five key cities.
At its headquarters near Beaverton, OR Nike employs 10,500, with a 1 percent layoff resulting in approximately 100 job eliminations. Nike’s EMEA and Converse businesses will not be impacted by the cuts.
As of May 31, Nike had approximately 77,800 employees worldwide, including both retail and part-time employees.
In February 2024, Nike announced plans to lay off 2 percent of its staff, or over 1,500 jobs, as part of a broader restructuring. Two rounds of layoffs this year, in May and June, focused on Nike’s technology division, with some work being shifted to third-party vendors.
Image courtesy Nike, Inc.
