Nike has announced a round of layoffs that will impact around 1,400 employees across the organisation, mostly concentrated in its technology department.
In a press release, the company said it was part of the final stretch of its Win Now turnaround strategy.
The layoffs are aiming to reshape its technology team, modernise its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply.
“Collectively, these changes will result in a reduction of approximately 1,400 roles in Global Operations, with the majority in Technology,” Nike COO Venkatesh Alagirisamy wrote.
“These reductions are very hard for the teammates directly affected and for the teams around them, too.”
The layoffs, which will affect employees across North America, Asia and Europe, represent less than 2% of Nike’s total workforce.
Nike said affected employees will be notified beginning Thursday.
This comes as CEO Elliot Hill has been working to turn Nike around after years of losses.
In January, the company announced 775 job cuts primarily at its U.S.-based distribution centres, due to the company’s work in accelerating its use of automation.
At the time, Nike claimed it was part of its strategy to return to “long-term, profitable growth”.
Those layoffs came on top of a round of cuts last summer that affected less than 1% of Nike’s corporate staff as part of the company’s efforts to realign the business.
In its last earnings report, Nike warned that sales will continue to fall for the rest of the year, primarily due to an anticipated 20% decline in China during the current quarter.
