Nike has announced that it will layoff 1400 employees across its global operations team, with the majority of reductions coming from its technology division. This move of the company is part of its ongoing ‘Win Now’ action plan which is aimed at streamlining operations and positions the brand for longterm profitable growth. In a memo to the employees, chief operating officer Venkatesh Alagirisamy stressed that the job cuts are not a new direction but the next phase of work already underway. He also outlined four important ares to focus:
- Technology Modernisation: Consolidating the technology footprint, streamlining structures, and focusing on two hubs — the Philip H. Knight Campus and Nike India Technology Center.
- Air Manufacturing Modernisation: Adjustments in staffing and processes at Air MI facilities in Beaverton, St. Louis, and Vietnam to improve resiliency and innovation.
- Converse Ground Game: Moving Converse Footwear Manufacturing and Engineering resources closer to factory partners for stronger collaboration.
- Materials Supply Chain Integration: Positioning materials work closer to footwear and apparel supply chain teams for faster, synchronized decisions.
“These shifts are about building a Global Operations organization that is more focused, more integrated with the business, and better built for the pace of sport,” Alagirisamy wrote.
Nike layoffs: Impact on employees
Nike has also acknowledged the difficulty of the decision. The company noted that the affected employees will be contacted directly by leaders and HR partners. The company also pledged to offer clear information and support during the transition.The layoffs come as Nike continues to reshape its operations to be more responsive, resilient, and efficient. The company is investing in automation, upskilling, and strengthening supplier relationships to simplify operations and accelerate innovation.
Read Nike COO Venkatesh Alagirisamy’s memo to employees here
Team,NIKE, Inc. is in the final stretch of our Win Now action plan.Across the company, we have been taking deliberate steps to strengthen our foundation, sharpen how we compete, and build a model designed to deliver long-term profitable growth. Global Operations is critical to that effort.Today, I am sharing the next phase of that work and doing so with the entire company because of the scope and importance to our collective future.Over the coming months, we will continue evolving Global Operations to better serve athletes and the business with more speed, simplicity, and precision. Some of that work is happening now and more will continue over time as we align our teams, capabilities, and footprint to the future needs of the company.This is not a new direction. It is the next phase of the work already underway.Earlier this year, I outlined four actions we’re taking across Operations to help make NIKE, Inc. a more responsive, resilient, responsible, and efficient company: optimizing our supply chain footprint, accelerating technology deployment, investing in upskilling our teams, and strengthening our partner and supplier relationships. The changes we are making now build on that work.At its core, these shifts are about building a Global Operations organization that is more focused, more integrated with the business, and better built for the pace of sport.In the coming weeks, several significant changes will take effect across Global Operations. These actions will result in changes to some team structures, work locations, and headcount.
- Technology Modernization. We’re reshaping our Technology team to sharpen alignment with the business, build leaner teams, and accelerate what matters most. This means consolidating our technology footprint, streamlining our structure to move with greater speed and focus, and doubling down on the locations where our work gets done with a focus on two strategically important hubs — Philip H. Knight Campus and our Nike India Technology Center. These are deliberate moves to build a leaner, faster, more connected Technology organization — one built to deliver for the consumer, the athlete, and the business.
- Air Manufacturing Modernization. We are modernizing how work gets done across our Air Manufacturing Innovation (Air MI) facilities in Beaverton, Ore.; St. Louis; and Vietnam by increasing resiliency, streamlining processes, and adjusting staffing to match the needs of the business. The changes will help us stay flexible as demand changes, accelerate future innovations and continue to deliver the product quality athletes expect from Nike.
- Converse Ground Game. We are moving some Converse Footwear Manufacturing and Engineering resources closer to our factory partners to enable stronger real-time collaboration and to better support the brand’s needs going forward.
- Materials Supply Chain Integration. We are positioning materials work closer to our Footwear and Apparel Supply Chain teams while continuing to build on the valuable capabilities already in place. This strengthens how we operate from raw materials through finished product, enabling faster, more synchronized decisions and groundbreaking innovations across our best-in-class manufacturing network.
Collectively, these changes will result in a reduction of approximately 1,400 roles in Global Operations, with the majority in Technology. These reductions are very hard for the teammates directly affected and for the teams around them, too.Part of doing the right thing is being direct. Another part is making sure people are treated with care. Teammates whose roles are impacted will hear directly from their leaders and HR partners starting today, and we will work to make sure they have clear information and support through this transition.To teammates whose roles are impacted, thank you. Your contributions have helped build this company, and we are grateful for the work, commitment, and care you have brought to Nike.To the broader team, moments like this require professionalism, empathy, and a shared commitment to one another. These changes are meant to make the company less complex and more responsive. As we look ahead, that means simplifying parts of how we operate, using more advanced automation where it helps us work better, and building an even stronger end-to-end foundation for future growth. I expect these efforts to continue beyond our Win Now action plan.The Operations team has played, is playing, and will play an important role in helping NIKE, Inc. strengthen its foundation and it will continue to play a critical role in the company’s comeback.Thank you for your leadership, your dedication to the athletes, and your dedication to each other.Venkatesh AlagirisamyEVP, Chief Operating Officer
