Nike to Reduce Corporate Workforce in Ongoing Restructuring

Global sportswear giant Nike Inc. has announced another round of corporate job cuts, affecting less than 1% of its workforce, as part of a broader plan to realign operations and revive growth. The decision, revealed on August 28, comes under the leadership of CEO Elliott Hill, who has been steering the company through a period of restructuring and intensified competition in the global sportswear market.

Previous Job Cuts to Reduce Costs

This is not the first time Nike has resorted to trimming its workforce. In February 2024, the company laid off nearly 1,600 employees, or about 2% of its workforce, to reduce expenses amid slowing demand. That move was aimed at safeguarding profitability during a period of heightened cost pressures and softening sales across major markets.

The new round of layoffs, while smaller in scale, reflects Nike’s continued efforts to reshape its structure and adapt to changing consumer and market dynamics.

Less Than 1% of Corporate Workforce Affected

Nike clarified that the upcoming layoffs will affect less than 1% of its corporate staff. As of May 31, 2025, the company employed approximately 77,800 people worldwide, including part-time and retail employees.

The sportswear major has not disclosed the exact number of job losses this time, though reports suggest that regional operations in EMEA (Europe, Middle East, and Africa) and Converse, Nike’s popular sneaker subsidiary, will not be impacted.

CEO Elliott Hill’s Vision for Nike’s Revival

Since taking charge, CEO Elliott Hill has been working on a comprehensive turnaround strategy to reposition Nike as a global leader in performance and lifestyle wear. His strategy focuses on three major areas:

• Investing in running shoes and sneakers, two categories where Nike has historically dominated but recently lost ground to competitors.

• Strengthening retail partnerships and rebuilding trust with global distributors.

• Expanding Nike’s physical store presence, counterbalancing its strong digital footprint with renewed in-store experiences.

Hill has emphasized that the restructuring is meant to bring sport and culture back to the core of Nike’s identity, with a renewed focus on athletes and consumers.

Realigning Teams by Sport

One of the major initiatives under Hill’s leadership is the creation of cross-functional teams organized by sport. This realignment aims to make Nike more consumer-centric while staying closer to emerging trends in sport culture and performance innovation.

In a statement on August 28, the company said:
“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.”

The restructuring signals Nike’s intention to simplify decision-making processes and move faster in adapting to changing market conditions.

Global Manufacturing Shifts

Beyond workforce changes, Nike has also been reassessing its supply chain strategies. Earlier in June 2025, the company announced plans to reduce dependence on Chinese manufacturing for products destined for the US market.

This decision came amid rising import tariffs and cost challenges, as Nike sought to diversify its production base across other Asian countries. By doing so, Nike aims to protect margins while keeping product flow stable for key markets.

Market Competition and Challenges

Nike’s restructuring comes at a time when competition from rivals such as Adidas, Puma, New Balance, and Lululemon has intensified. While Nike remains a global leader, it has faced headwinds in some product categories, particularly running shoes and basketball sneakers, where rivals have been capturing consumer attention.

Additionally, inflationary pressures and uneven global demand have impacted sales growth. The latest workforce reduction reflects Nike’s determination to streamline operations while doubling down on its core performance-driven products.

What Lies Ahead for Nike

Although the layoffs are relatively modest compared to the company’s size, they are a symbol of Nike’s broader transformation agenda. By realigning resources, focusing on innovation, and strengthening consumer connections, Nike is betting on a stronger comeback.

The next few quarters will be critical as the company executes its turnaround plan, while investors and analysts watch closely to see if Nike can regain its dominance in the fast-changing sportswear industry.