Nike Inc. has announced plans to lay off less than 1% of its corporate workforce as part of a broader restructuring initiative aimed at revitalizing its business.
The move, disclosed on August 28, 2025, comes amid ongoing efforts by CEO Elliott Hill to streamline operations, sharpen competitiveness, and reconnect the brand with its core identity rooted in sport and athlete culture.
The layoffs will not affect employees in Nike’s Europe, Middle East, and Africa (EMEA) region or those working for its subsidiary, Converse.
While the company has not specified the exact number of roles impacted, the decision is expected to affect corporate staff primarily in the United States and Canada.
Strategic Shift: Sport-Centric Realignment and Organizational Restructure
Under Hill’s leadership, Nike is undergoing a significant transformation.
In June, the company announced plans to reorganize its teams into cross-functional groups based on sport categories.
Nike created this new structure to place sport and sport culture at the center of its operations, enabling the company to engage more deeply with athletes and consumers.
“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.
The company has instructed affected employees to work remotely during the week of August 31 to allow space for one-on-one conversations about role changes.
Most new roles will take effect on September 21, following a team-wide meeting scheduled for September 10.
Background: Previous Layoffs at Nike and Cost-Cutting Measures
This latest round of job cuts follows earlier workforce reductions in 2024, when Nike laid off approximately 2% of its global staff—over 1,600 employees—to manage costs amid softening demand.
In May and June 2025, the company also downsized its technology division, shifting some functions to third-party vendors.
Nike’s global workforce stood at around 77,800 employees as of May 31, 2025, including retail and part-time staff.
The company has not disclosed how many of these are corporate roles.
Financial Pressures and Market Response
Nike’s decision to reduce headcount comes in response to declining sales and increased competition in the global sportswear market.
Net sales fell 12% in the final quarter of fiscal 2025 compared to the same period last year.
However, the company’s stock rose by 15% following its Q4 earnings call, signaling investor optimism about the turnaround plan.
CEO Elliott Hill acknowledged the challenges during the earnings call, stating, “The results we’re reporting in Q4 and in fiscal year 2025 are not up to the Nike standard.”
Elliott added, “But the work we’re doing to reposition the business through our Win Now actions is having an impact. It’s time to turn the page”.
Focus Areas: Product, Retail, and Manufacturing Strategy
As part of its turnaround strategy, Nike is investing in its running shoe and sneaker lines to regain market share.
The company is also working to strengthen relationships with retailers and expand its physical store presence.
Additionally, Nike has announced plans to reduce its reliance on Chinese manufacturing for the U.S. market to mitigate the impact of import tariffs.
This shift will support cost efficiency and supply chain resilience.
Nike Employee Transition and Leadership Messaging
In a memo to staff, Nike’s senior leadership acknowledged the difficulty of change but emphasized its necessity.
“Change can be difficult. It can also be what sharpens the edge,” the memo stated, encouraging employees to embrace the transition with commitment and determination.
Managers will reassign some employees to new roles, place them under different supervisors, or move them to new teams.
Nike has committed to handling the changes through direct conversations and support mechanisms.
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