Sportswear titan Nike announced on Thursday a significant reduction in its global workforce, cutting approximately 1,400 jobs as part of an aggressive effort to streamline operations and combat a persistent sales decline.

The layoffs, which represent roughly 2% of Nike’s global staff, will primarily impact the company’s technology and global operations teams across North America, Europe, and Asia.

The Fight for Market Share

The move comes as Nike struggles to reclaim its dominance in a rapidly changing market. Over the past three years, Nike shares have plummeted by more than 50%. The “Swoosh” is facing intense pressure from nimbler, specialized competitors such as On, Hoka, and Anta, all of which have successfully captured significant shelf space in the running and lifestyle categories.

CEO Elliott Hill, who took leadership in 2024, has been vocal about his mission to return Nike to its “core” DNA—focusing heavily on performance sports like running and soccer. However, analysts suggest the recovery is taking longer than anticipated.

Trouble in China

While Nike is streamlining its North American operations, the company’s biggest “trouble spot” remains China. Nike has forecasted a staggering 20% drop in sales for the Chinese market in the current quarter, a signal that local competitors and changing consumer habits are severely impacting the brand’s international footprint.

Tactical Shift: A Focus on Innovation

In a memo to staff, Chief Operating Officer Venkatesh Alagirisamy noted that the restructuring would allow Nike to better integrate its supply chains. The company aims to centralize its tech operations into two primary hubs:

1. Beaverton, Oregon (Global Headquarters)
2. The Nike India Technology Center

The goal is to speed up the “innovation-to-market” pipeline. While recent launches like the Vomero 18—which reached $100 million in sales within three months—have shown promise, the brand needs more consistent hits to offset the steep discounts currently being used to clear old inventory.