Nike to Cut 1,400 Jobs as Turnaround Efforts Struggle to Lift Sales

Minteesinot Niggusie

Nike plans to cut about 1,400 jobs globally, its latest move to streamline operations as the company grapples with a prolonged sales slowdown and intensifying competition. The layoffs, outlined in an internal memo by chief operating officer Venkatesh Alagirisamy, will primarily affect technology roles across North America, Asia and Europe.

The reduction accounts for just under 2 percent of Nike’s global workforce and follows earlier cuts, including 775 positions eliminated in January as part of automation efforts. The restructuring comes as Nike struggles to regain momentum after losing market share to faster-growing rivals such as On, Hoka and Anta.

The company’s shares have fallen by more than half over the past three years, reflecting investor concerns over weakening demand and inconsistent product innovation. Nike expects sales to decline between 2 percent and 4 percent in the current quarter, with China, its largest international market, projected to post a 20 percent drop.

The company has relied on discounting to clear excess inventory, placing further pressure on margins. Analysts say the latest job cuts suggest deeper structural challenges, warning that prior management may have overexpanded staffing, particularly in technology functions.

The company said the restructuring would help consolidate supply chain operations across materials, footwear and apparel. It is focusing technology activities in two main hubs: its headquarters in Beaverton, Oregon, and a technology centre in India.

Chief executive Elliott Hill, who took over in 2024, has pledged to refocus the brand on core categories such as running and football, while accelerating product releases. Recent launches have delivered uneven results, though the Vomero 18 running shoe generated robust sales rapidly.

Nike shares rose slightly in after-hours trading following the announcement.