Nike will cut about 1,400 jobs as part of a cost-cutting move aimed at reducing expenses and improving efficiency.
The sportswear giant said the layoffs are part of a wider restructuring as it continues to deal with weak sales and rising competition.
In a memo to staff, Chief Operating Officer Venkatesh Alagirisamy said the job cuts will mostly affect technology roles across global operations in North America, Asia, and Europe. The reductions represent just under 2% of Nike’s global workforce.
This latest move follows about 775 job cuts in January, as the company pushed to speed up automation and streamline operations.
Nike shares rose about 0.5% in after-hours trading, though the company’s stock has lost more than half its value in the past three years. Rivals like On, Hoka, and Anta have continued to gain ground in the market.
Chief Executive Officer Elliott Hill, who took over in 2024, is focusing on core sports like running and soccer, while trying to speed up product innovation.
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However, Nike is still under pressure. The company has relied on heavy discounts to clear old stock, while new product launches have had mixed results. One bright spot was the Vomero 18, which made $100 million in sales within three months.
Nike expects sales to fall by 2% to 4% this quarter, with China projected to drop by about 20%.
Morningstar analyst David Swartz said the job cuts suggest deeper issues.
“Nike should be further along in its recovery by now,” he said, adding the company may have become overstaffed in past restructuring efforts, especially in technology.
Analyst Drake MacFarlane of M Science said the move was expected.
“It’s a big headline but not surprising,” he said.
Nike had earlier hinted at workforce changes in a March SEC filing. A company spokeswoman did not share how much money the layoffs would save.
According to Alagirisamy, the restructuring will help Nike better integrate its supply chain and focus its technology teams in two main hubs: Beaverton, Oregon, and the Nike India Technology Center.