Sportswear giant Nike is set to lay off around 1,400 employees globally, with the bulk of the job cuts expected to impact its technology division. The move is part of a broader restructuring effort aimed at improving efficiency and reviving growth amid slowing sales.
The layoffs form part of the company’s ongoing transformation strategy, internally referred to as “Win Now”. The plan focuses on streamlining operations, modernising manufacturing processes and strengthening supply chain integration.
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Restructuring targets technology and operations
An internal memo from Chief Operating Officer Venkatesh Alagirisamy outlined that the overhaul will reshape Nike’s technology functions while aligning materials sourcing more closely with footwear and apparel production.
The restructuring will also include operational changes within the Converse brand and updates to manufacturing processes, particularly in the company’s Air technology systems.
While the layoffs account for less than 2 per cent of Nike’s global workforce, they reflect a larger shift in how the company is adapting to a fast-evolving retail landscape driven by automation and digital tools.
Automation and slowing sales drive cuts
These cutbacks come after other layoffs that have happened throughout the year, involving lay-offs from the distribution centers where Nike has automated the logistics and fulfillment processes.
The company has also announced declining revenues in recent quarters, suggesting possible future declines in revenues, especially in vital markets like China.
The turnaround plan at the company will be headed by the CEO Elliott Hill, who will lead the effort in creating a smaller business structure that will be able to adapt to the needs of consumers faster.
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Industry trend
Nike’s move is reflective of an industry-wide trend, whereby companies are cutting down workforce sizes while at the same time automating their operations through digital technology investments.
Technology and operational roles are most likely to see these changes as more companies opt for automation.
Nike’s ongoing turnaround comes amid these developments, which reflect a shift in retail labor as even multinational companies change their labor structures.
