Nike announced job cuts in its technology division as part of its broader strategy to revive the company. The American sportswear retailer has planned to shift the work done by the laid-off employees to third-party vendors, Reuters reported.
The development followed weeks after several changes were made in the top leadership team by Nike’s new CEO, Elliott Hill. As a part of the changes to its Senior Leadership Team (SLT), Nike elevated seasoned leaders to drive growth.
“This provides Elliot with the flexibility to reconnect with our employees and teams, evaluate the current strategies and business trends and develop our plans to best position the business for fiscal’ 26 and beyond,” Finance Chief Nike, Matthew Friend had earlier said.
The present move came after Hill took charge as the CEO last year, and since then there have been significant changes at Nike.
Nike’s Troubles
The American sportswear brand has lately struggled due to its failure to design and innovate new shoes. On the other hand, its competitor Adidas, driven by product innovation and marketing strategies, has increased its market share.
“The multi-brand environment is very competitive today, and it will take time to expand market share. This was reflected in our spring ‘25 order books, which came in roughly flat versus the prior year,” the Finance Chief added.
Earlier in March this year, the company posted a decline in earnings for the third quarter of the financial year 2025, driven by a slowdown in sales across all major markets and operating segments. Nike posted a gross profit of $4.68 billion in Q3 FY25, down by 16% year-on-year. The American sportswear company reported net income of $794 million in Q3 FY25 compared to $1.17 billion compared to the same month a year ago. Sales nosedived 9% in Q3 to $11.3 billion.
