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Nike is preparing another round of corporate layoffs, impacting less than 1% of its staff, as part of CEO Elliott Hill’s strategic plan to realign the company and drive growth. The move is aimed at shifting the company’s focus back to sports and athletic culture, reversing some of the structural changes implemented under former CEO John Donahoe.

Realignment and Strategic Goals

Under Donahoe, Nike’s corporate structure was organized by women’s, men’s, and kids’ divisions to emphasize lifestyle products. Critics argue that this approach diluted innovation and led to a slowdown in athlete-focused product development. Hill, a longtime Nike veteran, is now undoing this segmentation, forming “sport-obsessed teams” across Nike, Jordan, and Converse to prioritize innovation in performance products.

Executives identified new team leaders in July, and staff will learn whether they are impacted by Sept. 8, with most new roles taking effect on Sept. 21. Some employees will transition to new positions, report to new managers, or join newly structured teams.

Impact on Staff and Operations

While the cuts affect only a small fraction of employees, Nike’s EMEA and Converse operations will not be impacted. U.S. and Canada office staff will work remotely for a week to facilitate one-on-one conversations regarding role changes.

Context and Previous Layoffs

This round follows a February 2024 restructuring, which saw Nike cut 2% of its workforce (over 1,500 jobs) to streamline operations. Hill has emphasized that the goal is to reignite innovation, strengthen wholesale partnerships, and reverse sales declines.

Financial Outlook and Turnaround Efforts

During fiscal fourth-quarter earnings in June, Nike projected that sales and profit declines would moderate in upcoming quarters, signaling progress in its turnaround plan. Hill indicated that realigning the corporate structure would support faster innovation cycles and more athlete-centered product development.

“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 for the athletes they serve,” Hill said.

By reorganizing into teams solely focused on sports and performance, Nike aims to reestablish its edge in innovation, strengthen brand loyalty among athletes, and drive the next chapter of growth for the world’s largest sportswear company.

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