BEAVERTON, Oregon — Nike Inc. announced plans to cut approximately 1,400 jobs globally, representing nearly 2% of its workforce, with technology roles bearing the brunt of the reductions. The layoffs are part of a broader restructuring aimed at streamlining operations and speeding up the company's turnaround under CEO Elliott Hill.
The cuts target Nike's technology functions, which will be consolidated at its Philip H. Knight Campus in Beaverton and its India Technology Center. The company also confirmed shifts in work locations, team restructuring, and headcount adjustments within its Global Operations division. Chief Operating Officer Venkatesh Alagirisamy told staff in a memo that the moves are not a new direction but the next phase of work already underway, emphasizing that Nike is in the final stretch of its Win Now plan, which focuses on culture, product, marketing, marketplace, and physical retail presence.
Beyond software and data roles, the restructuring extends to Nike's Air Manufacturing Innovation sites in Beaverton, St. Louis, and Vietnam. Some Converse footwear manufacturing and engineering roles are being shifted closer to factory partners, while parts of the materials supply chain are being integrated into footwear and apparel teams.
The layoffs come as Nike grapples with a prolonged sales downturn. For the fiscal third quarter ended February 28, 2026, revenue was flat at $11.3 billion, while Nike Direct sales slipped 4%. Gross margin contracted 130 basis points to 40.2%, pressured by higher North American tariffs. The company expects sales to decline by 2% to 4% in the current quarter, with China potentially dropping 20%.
CEO Elliott Hill acknowledged in March that while meaningful actions are underway, the work is not finished. Finance chief Matthew Friend warned that the Win Now efforts will continue to weigh on results for the remainder of the calendar year. Morningstar analyst David Swartz noted that the layoffs suggest problems run deeper than originally thought.
Nike has already incurred $304 million in estimated pretax severance costs for the nine months ended February 28, according to filings, and the company warned that further steps could push charges higher in coming quarters. The company is pushing for fewer layers and greater automation to move products faster, a critical concern in the fast-paced sneaker market where competitors like On, Hoka, and Anta have gained ground.
The notifications to affected employees began on Thursday, according to the company memo. Alagirisamy said the moves are designed to make Nike less complex and more responsive. The central question remains whether a leaner Nike can win back shoppers before rivals capture more market share.
Shares of Nike (NYSE: NKE) closed at $44.69 on Friday, down 0.2%, leaving the company's market capitalization at approximately $66.2 billion. The stock has been trending lower as investor patience wears thin amid the prolonged turnaround.
