Nike (NKE) is launching another major round of layoffs, cutting roughly 1,400 jobs worldwide as part of its ongoing “Win Now” turnaround strategy. The reductions will mostly be in the company’s technology division, marking one of the largest tech‑focused restructurings in the footwear company’s history.
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In a note to employees, COO Venkatesh Alagirisamy said the cuts are tied to a broader effort to reshape Nike’s tech organization, modernize its Air manufacturing operations, shift parts of Converse Footwear, and fold materials supply chain work into the company’s core footwear and apparel teams.
“These reductions are very hard for the teammates directly affected and for the teams around them, too,” he wrote, emphasizing that the changes are meant to accelerate Nike’s ability to compete at the current pace of sport and consumer demand.
Also, the layoffs, which span North America, Asia, and Europe, represent less than 2% of the company’s global workforce and are intended to better position the brand for long‑term growth.
Nike’s Recent Layoff History
The latest cuts continue Nike’s broader restructuring under CEO Elliott Hill, who has been trying to revive the brand after years of slowing sales. In January, the company cut 775 jobs at U.S. distribution centers to boost automation, following a smaller round of layoffs last summer that affected less than 1% of corporate staff.
Despite some early progress, Nike recently warned that sales will keep falling through the rest of the fiscal year, including a projected 20% drop in China this quarter. The company says the ongoing job cuts are necessary to return to long‑term profitable growth, even though they create short‑term disruption across teams.
Is Nike a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 13 Buys and 11 Holds assigned in the last three months. Further, the average Nike price target of $60.90 per share implies 36.01% upside potential.
