Nike Deepens Job Cuts with 1,400 More Layoffs Amid Demand Slowdown

Global sportswear giant Nike has announced another round of workforce reductions, cutting around 1,400 jobs worldwide as it intensifies efforts to simplify operations and improve efficiency amid a prolonged demand slowdown.

The layoffs will primarily impact global operations and technology teams across North America, Europe, and Asia.

In a memo to employees, Chief Operating Officer Venkatesh Alagirisamy said the cuts will account for a little less than 2% of the global workforce and are part of a broader restructuring aimed at streamlining operations, particularly in technology, and improving efficiency across supply chain and product categories.

This is the latest in a series of job reductions at Nike. Earlier in January, the company had already eliminated around 775 roles as part of its push toward automation and cost efficiency. The repeated restructuring reflects ongoing pressure on the business as it tries to reset its operating model.

Weak Demand Slows Recovery

Nike continues to face a prolonged period of weak sales, with recovery efforts showing mixed results across regions. The company has been relying on deep discounts to clear excess inventory, a strategy that has helped reduce stock but continues to weigh on profitability and brand pricing power.

While select product launches have gained traction, overall consumer demand remains inconsistent, making it difficult for the company to regain steady growth momentum.

Competition, China Drag Weighs

Competition is intensifying for Nike as rivals like On, Hoka, and Anta expand their presence and gain consumer traction, adding pressure on its market position.

The business environment remains challenging, with the company forecasting a 2%–4% decline in revenue for the current quarter. China, one of its most important markets, is expected to remain a major drag, with sales projected to fall sharply.

Margins have also remained under pressure due to discounting and uneven product performance, adding to the complexity of its recovery strategy.

Turnaround Strategy under Scrutiny

Since taking charge in 2024, CEO Elliott Hill has focused on re-centering the brand around core sports like running and football while accelerating innovation cycles. However, analysts say progress has been uneven, with only select products delivering strong results.

Market watchers suggest that the latest layoffs signal deeper structural adjustments rather than short-term cost cutting, as Nike attempts to rebuild growth momentum in a highly competitive global sportswear market.