The renowned sportswear brand Nike has announced a new round of job cuts as part of a restructuring strategy led by its CEO, Elliott Hill. The company plans to eliminate less than 1% of its global corporate workforce. Although the exact number of positions to be eliminated has not been disclosed, the company confirmed that its EMEA (Europe, Middle East, and Africa) and Converse divisions will not be affected by this measure.
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As of May 31 this year, Nike had approximately 77,800 employees worldwide — including store personnel and part-time workers — and is implementing these changes to return to sustainable growth after a series of sales declines.
What is Elliott Hill’s strategy as CEO of Nike?
Since taking on the role of CEO, Elliott Hill has pushed for a deep transformation within the brand. His approach has been to “realign” the organizational structure around multifunctional teams segmented by sport. This contrasts with the previous model led by John Donahoe, who reorganized the company around gender divisions (men, women, and kids) as part of an effort to grow the lifestyle business.
However, that strategy was criticized for steering the company away from its athletic roots and weakening innovation by prioritizing products for a general audience over athletes.
“Instead of a men’s, women’s and kids construct, Nike, Jordan, and Converse teams will now come to work every day with the mission to create the most innovative and coveted product, footwear, apparel and accessories for the specific athletes they serve,” Hill told CNBC.
What impact will this restructuring have on employees?
As part of the changes, Nike reported that some employees will take on new roles or levels, report to different managers, or be integrated into new teams. The company explained: “This new formation is built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer,” the company told CNBC in response to an inquiry.
An internal memo sent to staff states that corporate employees based in U.S. and Canadian offices will work remotely next week, unless otherwise instructed. This arrangement is intended to create space for individual conversations in which employees will learn whether they are affected. Notifications will be made by September 8, and most of the new roles will take effect on September 21.
Nike’s previous layoffs
In February 2024, Nike had already announced the elimination of 2% of its global workforce — more than 1,600 positions — as part of a cost-cutting plan in response to demand pressures.
That measure was viewed as an urgent response to an uncertain financial outlook. In contrast, the newly announced cuts this week are more strategic in nature, linked to the implementation of a new corporate vision under Hill’s leadership.
What is Nike aiming for with this new internal structure?
The company’s goal is to regain its status as an undisputed leader in sports innovation, reconnect with its performance-driven roots, and strengthen its relationship with consumers and retail partners. The message is clear: sport is once again at the heart of Nike.
According to Hill, Nike will be organized into “sport-obsessed teams” tasked with: “driving a relentless flow of innovative product across all three of the brands.”
In addition, Nike is making a strong push to revitalize its athletic footwear and sneaker lines, areas where it has lost ground to competitors like Adidas, Puma, and emerging streetwear-oriented brands.
Nike’s transformation is taking place in a challenging environment for the sports retail industry. In Asian markets such as Vietnam, for example, the stocks of companies tied to Nike have been affected by investor sentiment around bilateral trade agreements, such as the recent U.S.-Vietnam deal.
In this context, Nike is working to balance international expansion, strengthen its physical store presence, and rebuild trust with both consumers and wholesale partners.
With information from Reuters and CNBC
