Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
The New York Times • • business
Key Points:
- Nike is cutting approximately 1,400 jobs in its operations division, primarily impacting its technology department, as part of a business reorganization aimed at increasing speed, simplicity, and precision.
- The layoffs are part of a broader turnaround plan following a sales slump caused by a shift away from performance products toward lifestyle items, with the company now refocusing on sports and innovation.
- Nike's CEO Elliott Hill has acknowledged challenges including declining sales in Asia, particularly China, and external factors like the Middle East conflict and rising oil prices affecting business stability.
- The job cuts span multiple regions, including North America, Europe, and Asia, and affect various parts of the company such as corporate staff, distribution centers, technology teams, and supply chain employees related to Nike’s Air cushioning system.
- Nike is consolidating its technology workforce around its headquarters in Beaverton, Oregon, and a tech center in Bengaluru, India, as part of the reorganization efforts.
