Nike To Cut 1,400 Jobs Globally As 'Win Now' Turnaround Plan Gathers Pace

(MENAFN- Live Mint) Nike Inc. is eliminating 1,400 positions, representing under 2% of its global staff, as the athletic-wear giant manoeuvres to keep its recovery roadmap on course.

The reductions will primarily impact technical roles within Nike's international operations division, the firm announced Thursday.

Nike is refining its organisational framework and implementing sophisticated automation, Chief Operating Officer Venkatesh Alagirisamy noted in a memo to staff.

“Collectively, these changes will result in a reduction of approximately 1,400 roles in global operations, with the majority in technology,” Alagirisamy wrote.

“These reductions are very hard for the teammates directly affected and for the teams around them, too,” Alagirisamy said.

The firm stated these job cuts fall under Nike's expansive“Win Now” recovery plan intended to reorganise its tech department, upgrade Air production facilities, relocate certain Converse Footwear segments, and merge its materials procurement units into its primary shoe and clothing supply chain divisions.

This marks the most recent overhaul led by Chief Executive Officer Elliott Hill.

CEO Elliott Hill has been striving to revitalise Nike following several years of declining revenue.

Although Hill has achieved some preliminary gains, the journey has encountered various obstacles.

Nike previously reduced corporate headcount by less than 1% this past summer, and in January, dismissed roughly 775 distribution hub employees as part of an initiative to mechanise workflows. During that period, the organisation noted that the reductions aligned with Nike's objective to achieve“long-term, profitable growth.”

These layoffs affect staff members across North America, Asia, and Europe, accounting for less than 2% of the brand's worldwide workforce. Nike reported approximately 77,800 workers globally as of 31 May. Impacted staff will receive notifications starting Thursday, Nike mentioned.

“This is not a new direction,” Alagirisamy wrote.“It is the next phase of the work already underway.”

The Beaverton, Oregon-headquartered firm's stock climbed 0.5% in after-hours trading at 4:57 PM in New York. The shares have dropped 30% throughout this year. In its third fiscal quarter financial disclosure last month, the merchant cautioned that revenue would continue to decline for the remainder of the year, driven largely by a projected 20% slump in China for the current quarter.

Nike in talks to make match balls for European men's Champions League

Nike is in talks to produce the official match balls for the European men's Champions League, potentially seizing a partnership that its competitor, Adidas AG, has maintained for a quarter-century. The agreement would encompass balls for every UEFA men's club competition between 2027 and 2031, per a release from UC3-the collaborative venture between UEFA and European Football Clubs managing the marketing, sales, and distribution of commercial rights for these events.

This move represents Nike's latest attempt to challenge Adidas in its traditional territory. Two years prior, Nike successfully outbid its opponent to secure the primary kit sponsorship for Germany's national football squads, a transition that sparked backlash from various circles, including top-tier politicians in Berlin. Despite this, Adidas has generally outperformed Nike lately, capturing more market share amid the sustained surge in popularity of its heritage footwear, such as the soccer-inspired Samba.

At the same time, Nike has found it difficult to reignite revenue growth through its recovery initiatives, with particularly visible weaknesses in the Chinese market and within its Converse subsidiary.

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