Layoffs come into force under sports brand's 'Win Now' strategy
Nike is laying off about 1,400 people globally as the sports brand enters the final stretch of its turnaround strategy that will impact its workforce.
Chief operating officer Venkatesh Alagirisamy announced on Thursday that Nike will be undergoing "several significant changes" under the final phase of its "Win Now" strategy that will impact global operations.
The strategy, introduced under CEO Elliott Hill, will reshape the company's tech team, modernise its Air Manufacturing, move Converse Footwear Manufacturing and Engineering resources close to factory partners, and position materials work closer to its Footwear and Apparel Supply Chain teams.
"Collectively, these changes will result in a reduction of approximately 1,400 roles in Global Operations, with the majority in Technology," Alagirisamy said in the announcement.
"These reductions are very hard for the teammates directly affected and for the teams around them, too."
The layoffs are expected to impact employees in the company's North America, Asia, and Europe operations, according to reports.
"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," Alagirisamy said.
The COO extended his gratitude to departing employees, while urging empathy among the company's broader workforce.
"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," he said.
"To the broader team, moments like this require professionalism, empathy, and a shared commitment to one another."
Moving towards automation
This is the second round of layoffs at Nike this year after the brand cut more than 700 employees in the US in January to speed up automation, according to a Reuters report.
While this latest round of layoffs has been attributed to the company's turnaround strategy, Alagirisamy noted that the company will be using "more advanced automation" in the future.
"These changes are meant to make the company less complex and more responsive," he said.
"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."
