Nike slashes headcount again to accelerate turnaround
The group is laying off about 1,400 of its staff, primarily in technology, as part of its "Win Now" restructuring plan. This latest round of layoffs underscores Elliott Hill's commitment to streamlining the organization as sales remain under pressure, particularly in China.
On Thursday the sportswear giant announced the deletion of about 1,400 roles across its global operations, with a heavy concentration in technology, representing a bit under 2% of its total workforce. Management framed the move as a further step in the "Win Now" initiative, aimed at simplifying the organizational structure, modernizing industrial tools, reorganizing certain Converse operations and better integrating materials and supply chain functions.
Since Elliott Hill returned to lead the company in late 2024, the group has stepped up adjustments to restore more profitable growth. In January, Nike had already announced 775 job cuts at its US distribution centers as part of an automation ramp-up. Reuters noted at the time that the group employed 77,800 people as of late May 2025.
This latest wave of cuts comes as the operational turnaround remains a work in progress. In late March, Nike warned that sales for the current quarter would decline by 2% to 4%, with a projected 20% slump in China, a key market for the group, while promotional pressure continues to weigh on margins. YTD, the stock has retreated by approximately 30% and shed nearly 2% during trading on Thursday.
Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (66.9%);
- clothing (28.1%);
- sports equipment (4.8%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.2%).
At the end of May 2025, products were being marketed through a network of 1,034 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (42.3%), Europe/Middle East/Africa (26.5%), China (14.2%), Asia/Pacific and Latin America (13.5%) and other (3.5%).
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