Nike Slashes Tech Jobs as America’s Largest Shoe Giant Streamlines for the Future

According to reports, Nike, the biggest footwear manufacturer in America, is cutting employees in its technology branch. The corporation has acknowledged the layoffs, according to Reuters, but it has not yet revealed how many staff would be affected.

The corporation disclosed that the layoffs are a component of a larger restructuring initiative. According to the article, the business has announced that it will contract with other contractors to handle some of the tech-related tasks.

The layoffs coincide with Nike CEO Elliott Hill's ongoing efforts to restructure the organisation's operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike's product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.

Reasons for the Layoff

According to a media source, Nike is laying off some of its technology division employees, according to an email from a Nike spokesperson. The number of workers impacted by the layoffs is not disclosed by the spokesperson.

He added that Nike intends to use a few outside vendors to handle the tech-related tasks. Nike has had to contend with dwindling revenue forecasts; the company's fourth-quarter estimate indicates a more severe decline than anticipated.

With competitors gaining ground in the sports apparel sector, the corporation is trying to re-engage with changing consumer demands and streamline processes.

The layoffs coincide with Nike CEO Elliott Hill's ongoing efforts to restructure the organisation's operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike's product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.

Layoffs have Become a New Normal for Bigger Players

This layoff announcement coincides with employment cuts by a number of multinational corporations, such as Amazon, Intel, and Goldman Sachs. Such developments are happening mainly owing to the growing impact of artificial intelligence (AI) and uncertainties in the global economy. Intel is getting ready for a massive restructure following a large financial loss in 2024.

Similarly, Amazon also plans to eliminate about 14,000 administrative roles in order to save $3 billion yearly.

Companies are increasingly focusing on cost optimisation and automation as a result of the rapid growth in AI adoption. This adoption is resulting in job losses across a number of industries.

Goldman Sachs is also getting ready to lay off employees, with intentions to trim staff by 3–5% after an annual performance review. About 150 junior banker positions were recently cut by Bank of America; nevertheless, the majority of impacted workers were offered opportunities outside of investment banking.

Given the unpredictability of the world economy, more businesses might do the same in the months to come.