Nike to Cut 1% of Corporate Workforce in Latest Restructuring Move

Nike, the world’s largest athletic footwear and apparel company, confirmed on Thursday that it will implement another round of layoffs, this time impacting its corporate team. The move reflects ongoing efforts by the sportswear giant to streamline operations in line with its “Win Now” strategy and reposition the business for a stronger long-term outlook.

The announcement follows earlier comments by Nike’s president and CEO Elliott Hill, who had hinted at possible workforce reductions during the company’s fourth-quarter fiscal 2025 earnings report in June.

Scope of the Layoffs

According to Nike, approximately 1 percent of its corporate employees will be affected by the layoffs. The realignment process will begin in the coming week, with U.S. and Canadian employees working remotely until September 8, when conversations about the changes conclude.

Following this, a Nike Team meeting has been scheduled for September 10, with the new organizational structure and roles taking effect on September 21.In an email addressed to employees, Hill and Nike’s senior leadership acknowledged the challenge of workforce reductions, while encouraging employees to embrace the company’s athlete-driven culture in the face of change:

“Change can be difficult. It can also be what sharpens the edge, aligns the team and sets up the win. And the W is ours to take, embracing an athlete mindset that leads with passion, commitment and determination.”

Financial Context and Market Response

The layoffs come on the heels of a difficult fourth quarter for Nike. Net sales fell 12 percent year-over-year in the final quarter of fiscal 2025. Despite this decline, investors appeared optimistic about Nike’s direction, with shares rising 15 percent on the day following its earnings call.

During that call, Hill reassured stakeholders:

“The results we’re reporting in Q4 and in fiscal year 2025 are not up to the Nike standard. But as we said 90 days ago, the work we’re doing to reposition the business through our Win Now actions is having an impact. From here, we expect our business results to improve. It’s time to turn the page.”

Previous Workforce Reductions

This marks the third round of layoffs at Nike in 2025. In May and June, reductions targeted the company’s technology division, with some functions outsourced to third-party vendors. Last year, in Spring 2024, Nike also announced workforce cuts amounting to roughly 740 employees at its Beaverton, Oregon headquarters, part of a broader $2 billion cost-saving initiative designed to prepare for revenue declines.

The “Win Now” Strategy

The layoffs coincide with the company’s broader “Win Now” strategy announced earlier this year by Hill. The strategic shift focuses on:

• Sharpening performance across the Nike, Jordan Brand, and Converse portfolios.

• Scaling back production of select popular lifestyle sneakers, such as the Air Jordan 1, Air Force 1, Dunk Low, and Vomero 5, to rebalance global demand.

• Refocusing investment on core performance products and growth categories like running.

• Zeroing in on three priority markets , the U.S., U.K., and China , with special emphasis on five global city hubs: New York, Los Angeles, London, Beijing, and Shanghai.

A company-wide email stated Nike’s intent to recenter around sport and consumer connection:

“In the coming weeks, we shift to a sport offense — setting ourselves up to win and create the next great chapter in Nike, Inc.’s story. It’s a formation built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer, and to give us the space to create what only we can.”

Signs of Resurgence

Despite the revenue decline, there are signs that parts of Nike’s business are already regaining momentum. In Q4, Nike’s running category delivered high single-digit growth, with strong demand led by the Vomero franchise.The latest model, the Vomero 18, has generated $100 million in sales in just a few months, underscoring Nike’s ability to re-energize performance lines that resonate with consumers.This growth is particularly important as Nike seeks to demonstrate the early impact of its Win Now strategy to both consumers and investors.

Looking Ahead

While the latest reduction represents a small percentage of Nike’s global workforce, it sends a clear signal that the company is determined to realign operations, sharpen focus, and drive profitability as it navigates an intensely competitive retail landscape.Nike continues to face pressure from rivals like Adidas, Puma, and resurgent lifestyle players such as New Balance and On Running. Yet Nike remains confident that by leveraging its global scale, iconic branding, and deep athlete connections, it can regain momentum.For affected employees, the layoffs bring tough personal implications. For Nike as a company, they represent part of a larger recalibration designed to set the foundation for the brand’s next growth chapter.

As Hill summarized during the earnings call, Nike sees these changes as the start of a turnaround:

“It’s time to turn the page.”

With its restructuring underway, cost-saving measures in place, and promising growth in key performance segments like running, Nike hopes the coming quarters will indeed mark the beginning of its resurgence , back to delivering results that align with the Nike standard.