Nike to let go of corporate staff amid restructuring effort

Nike is planning another round of layoffs that will cut less than 1% of its corporate workforce, the sportswear giant announced on Thursday as part of new CEO Elliot Hill’s efforts to revitalize its business.

It is unclear how many of Nike’s 77,800 employees will be affected, but its EMEA and Converse businesses are not expected to be impacted, according to CNBC.

“As we shared in Q4 earnings, NIKE, Inc. is in the midst of a realignment. The moves we’re making are about setting ourselves up to win and create the next great chapter for NIKE,” the company told CNBC in a statement. “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, and to give us the space to create what only NIKE can.”

Nike previously laid off more than 1,500 staff members, amounting to 2% of its global workforce, as part of a broader restructuring program by Hill to ‘realign’ its teams from the men’s, women’s, and kids divisions into one focused on sports and athletes. 

“Instead of a men’s, women’s, and kids construct, Nike, Jordan, and Converse teams will now come to work every day with a mission to create the most innovative and coveted product, footwear, apparel, and accessories for the specific athletes they serve,” said Hill.

Under previous CEO John Donahoe, Nike focused on lifestyle products to attract a wider range of customers, a decision critics say adversely affected the company’s innovation pipeline.

Since taking on the chief executive role last November, Hill, a longtime Nike veteran, has been undoing that work in the hopes that it will reverse the decline in sales and reignite innovation. 

Leaders were identified in July to head the new ‘sport-obsessed’ teams, the company said, adding that a ‘small number’ of employees will depart as a result of the shift.

"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," Nike said in a statement to Reuters on Thursday.

In a staff memo, the company said some employees will take on new positions, report to new managers, or join new teams, while those impacted by the layoffs will be informed through conversations by September 8. 

“To make space for these conversations, corporate employees based in an office location in the U.S. and Canada will work remotely next week, unless otherwise informed by your leader,” the memo said.