Bengaluru – Nike said on April 23 it is laying off about 1,400 people to streamline workflows, as the struggling sportswear company fights through a years-long sales slump.
In a memo to employees, chief operating officer Venkatesh Alagirisamy said Nike would cut jobs in global operations – mainly technology – in North America, Asia and Europe, accounting for a little less than 2 per cent of its global workforce.
It is the latest in a string of job cuts at Nike, most recently the axing in January of 775 roles in a bid to speed up automation.
Nike shares edged up about 0.5 per cent in after-hours trading after the announcement. They have lost more than half their value in the last three years, as nimbler competitors like On, Hoka and Anta have won more shelf space.
Nike chief executive officer Elliott Hill, who took the helm in 2024, has vowed to re-centre the Nike brand on core sports like running and soccer, and bring new and innovative shoes to market quickly.
Margins have remained pressured as Nike has used steep discounts to work through old inventory. Meanwhile, efforts to wow the market with new, must-have sneakers have been inconsistent.
In 2025, Mr Hill said turning Nike around would depend on the company delivering “something new to the consumer week after week,” but new rollouts have yet to move the needle, with the exception of the Vomero 18 shoe, which launched in 2025 and reached US$100 million (S$128 million) in sales in three months.
Nike has forecast a 2 per cent to 4 per cent drop in sales in the current quarter. China, its primary trouble spot, is expected to fall 20 per cent in the quarter, Nike has said.
The layoffs signal “that problems run deeper than originally thought,” said Morningstar analyst David Swartz.
“Nike should be further along in its recovery by now,” he said, adding that Nike may be overstaffed “as prior management tried to solve problems by adding people, especially in technology.”
Nike had said in a March exchange filing that headcount adjustments could be coming. “It’s a big headline but not surprising,” said Drake MacFarlane, an analyst with M Science.
A Nike spokeswoman declined to provide a cost-savings figure for the layoffs. REUTERS
