Nike announced Thursday that it will eliminate approximately 1,400 roles in its global operations division, with the majority in technology, as the sportswear giant pushes forward with efforts to simplify its structure and reverse a prolonged sales slump.
The cuts, which represent less than 2% of Nike’s total global headcount, mark the company’s second major round of layoffs this year. They follow the elimination of 775 jobs, primarily in distribution centers, announced in January.
In a memo to employees, Nike Chief Operating Officer Venkatesh Alagirisamy described the moves as “the next phase of the work already underway” under the company’s “Win Now” action plan. The plan aims to strengthen Nike’s foundation for long-term profitable growth by focusing on speed, simplicity, and precision across operations.
Key Changes Target Technology, Manufacturing, and Supply Chain
The reductions will primarily affect technology roles as Nike consolidates its tech footprint into two strategic hubs: the Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center in Bengaluru. Other changes include:
- Technology Modernization: Streamlining teams to build a “leaner, faster, more connected” organization aligned closely with business needs. Air
- Manufacturing Modernization: Adjusting staffing at Air Manufacturing Innovation facilities in Beaverton, St. Louis, and Vietnam to increase resiliency and flexibility.
- Converse Ground Game: Relocating some Converse footwear manufacturing and engineering resources closer to factory partners for better collaboration.
- Materials Supply Chain Integration: Bringing materials work closer to footwear and apparel supply chain teams to enable faster, more synchronized decisions.
“These changes are meant to make the company less complex and more responsive,” Alagirisamy wrote in the memo. “As we look ahead, that means simplifying parts of how we operate, using more advanced automation where it helps us work better, and building an even stronger end-to-end foundation for future growth.”
The COO emphasized that the shifts build on earlier actions outlined this year to optimize the supply chain, accelerate technology deployment, upskill teams, and strengthen supplier relationships.
Support for Affected Employees and Broader Context
Nike said impacted employees will hear directly from their leaders and HR partners starting Thursday and will receive support through the transition. Alagirisamy expressed gratitude to those affected: “Your contributions have helped build this company, and we are grateful for the work, commitment, and care you have brought to Nike.”
The layoffs come as Nike continues to grapple with a years-long sales slump. The company has forecast declining sales for the current fiscal year, with weakness particularly pronounced in China despite efforts to rejuvenate that market. CEO Elliott Hill has acknowledged that the turnaround is taking “longer than I would like.”
This is the fourth consecutive year of significant workforce reductions at Nike, a company that historically expanded rapidly with few cuts. Earlier rounds included roughly 1,600 jobs in 2024 and additional reductions in 2025.
Industry Pressure and Nike’s Strategy
As the world’s largest sportswear company, Nike faces intensifying competition from rivals like Adidas and emerging brands. The company has shifted focus back toward performance products after earlier emphasis on lifestyle offerings, while accelerating product innovation and in-person retail experiences.
Analysts and industry observers see the operations overhaul, including greater automation and streamlined supply chains, as essential for Nike to bring new products to market more quickly and improve efficiency.
For employees in Beaverton and other global locations, the news underscores the challenging realities of a corporate turnaround in a highly competitive industry. Nike’s leadership, however, frames the reductions as necessary steps to position the iconic brand for renewed growth and innovation in service of athletes worldwide.