Nike to cut less than 1% of corporate workforce in new restructuring move
The move is aimed at streamlining operations while strengthening Nike's core focus on sport and consumer engagement.
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Nike Inc. announced on Thursday that it will lay off less than 1% of its corporate workforce, as part of a broader restructuring under newly appointed CEO Elliott Hill, Reuters reported.
The move is aimed at streamlining operations while strengthening Nike's core focus on sport and consumer engagement. As of May 31, Nike employed around 77,800 people worldwide, including retail and part-time staff.
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The company did not disclose the exact number of employees who will be impacted, but clarified that the job cuts will not affect its EMEA operations or Converse subsidiary, CNBC reported earlier.
The decision follows Hill's June remarks about Nike's shift to "cross-functional teams by sport," a restructuring aimed at putting "sport and sport culture back at the center" of the business.
The company emphasized that this new formation is designed to deepen connections with athletes and consumers, while reclaiming its lost edge in the running shoe and sneaker categories.
Nike has also been renewing partnerships with retailers and expanding its physical retail footprint to counter growing competition. In addition, the sportswear giant is reducing its dependence on Chinese manufacturing in the U.S. market, in a movie to ease import tariff pressures, the report added.
This restructuring comes after Nike's February 2024 announcement of a 2% workforce reduction - amounting to over 1,600 jobs - citing weak demand and rising expenses.
