Layoffs: Nike Announces Job Cuts In Tech Division Under New Leadership

This decision arrives on the heels of notable leadership changes implemented by CEO Elliott Hill, who stepped into the role last year.

Despite Nike’s global brand recognition, the company has encountered setbacks in recent months, largely stemming from a lack of innovation in its footwear lineup.

Source : Freepik

Nike has initiated a round of layoffs targeting its technology division, aligning with a broader turnaround plan for the brand. According to Reuters, the sportswear giant intends to outsource the responsibilities previously handled by the affected employees to external vendors. This decision arrives on the heels of notable leadership changes implemented by CEO Elliott Hill, who stepped into the role last year.

The reshuffle at the top saw experienced executives promoted to key positions within the Senior Leadership Team (SLT), aimed at steering Nike toward renewed growth. The intention, as described by Nike’s Finance Chief Matthew Friend, is to provide Hill 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.”

Leadership Change Sparks Strategic Shift

The recent job cuts appear to be part of Hill’s wider initiative to restructure the company’s operations. Since taking charge, he has focused on evaluating Nike’s business approach and leadership structure in response to ongoing challenges in the marketplace.

Despite Nike’s global brand recognition, the company has encountered setbacks in recent months, largely stemming from a lack of innovation in its footwear lineup. At the same time, rival Adidas has gained traction through aggressive product development and marketing, resulting in an uptick in its market share.

Commenting on the state of the competitive landscape, Friend noted, “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.”

Sales Decline Highlights Ongoing Struggles

Earlier this year, Nike reported a dip in third-quarter earnings for fiscal 2025, as sales declined across its primary markets and business segments. Gross profit for Q3 stood at $4.68 billion, marking a 16 per cent drop compared to the same period last year, reported Outlook Business. Net income also fell sharply, with Nike posting $794 million, a significant decrease from $1.17 billion in the year-ago quarter. Revenue for the quarter dropped 9 per cent to $11.3 billion.