Nike Announces New Round of Layoffs

On the 28th local time, Nike Group in the United States announced plans for a new round of layoffs. This round of layoffs is expected to affect less than 1% of employees, and it is currently unclear how many positions will be impacted. In February last year, Nike announced a 2% layoff, which affected more than 1,500 positions.

Nike stated in a statement that the layoffs are part of the company leadership’s business restructuring efforts aimed at restoring growth. The layoffs will not affect Nike’s operations in Europe, the Middle East, or Africa, and the company’s Converse brand will also not be impacted. Affected employees will be notified by September 8, and most new positions will take effect on September 21. As of May 31 this year, Nike had approximately 77,800 employees worldwide, including both full-time and part-time staff.

Nike stated that this new structure aims to refocus on sports and sports culture, establishing deeper connections with athletes and consumers. Under the leadership of former CEO Mark Parker, Nike changed the way its business was divided—not by sport, but by women's, men's, and kids' businesses. Last October, after Elliott Hill became the new President and CEO, he promoted a business restructuring that centers the company’s operations on sports and culture.

Nike's financial report reveals that in the fiscal year 2025 ending on May 31, Nike's global revenue was $46.3 billion, a year-on-year decrease of about 10%; net profit plunged 44% year-on-year to $3.2 billion, marking the worst record in nearly five years. Reportedly, Nike's once-proud footwear business has become the main drag on overall performance, with sales in this category declining by approximately 13% worldwide. Although relatively stable, the apparel category also saw a decline of about 12%, indicating that Nike Group is facing challenges with its multi-brand operation strategy.