Nike To Cut Around 1,400 Jobs to Combat Declining Sales
Synopsis
Nike has announced a major workforce reduction of 1,400 employees on April 23, 2026, as the sportswear leader attempts to navigate a persistent sales decline. The cuts, which focus on global technology and operations, come as Nike's market value has halved over the last three years. Faced with a projected 20% sales crash in China and stiff competition from brands like Hoka and On, CEO Elliott Hill is centralizing tech operations in the U.S. and India to speed up innovation. Analysts warn that the layoffs suggest Nike's recovery is stalling, requiring a more aggressive efficiency push to regain its standing in the global running and soccer markets.
US sportswear giant Nike said on Thursday it will axe about 1,400 roles, around two per cent of its global workforce, due to a protracted revenue slump. The move is meant to streamline the company’s operations and accelerate its ability to stock stores with new products.
Key Highlights
- Nike to remove 1,400 jobs, mainly in global operations and technology
- The job cuts represent just under 2% of Nike’s global workforce.
- Tech jobs are targeted in Oregon (USA) and India.
- China sales are expected to drop 20% this quarter.
- In three years it lost more than half its value.
Nike to layoff 2% of its workforce
Venkatesh Alagirisamy, Nike’s Chief Operating Officer, announced a new wave of layoffs on Thursday, April 23, 2026, via an internal memo to employees. The sports giant would cut 1,400 jobs, which is about 2%% of its workforce. The reductions will impact workers in North America, Asia and Europe. This isn’t Nike’s first effort to shrink its way back to health; the brand already eliminated 775 positions in January as part of a push toward automation. Nike is cutting its workforce now, hoping to connect the dots from the purchase of materials to the factories that make shoes and clothes, which could lead to less waste and lower expenses.
Nike is finding it hard to keep up
One of the main reasons for these extreme measures is a years-long sales slump that Nike is unable to recover from. Gradually, market share has been stolen by fresher designs, Anta, Hoka and while Nike is not on every shelf. The profit margins of Nike have also been negatively impacted as it, too, has resorted to deep discounts to clear out old inventories. Most of Nike’s recent product releases have been lacklustre for shoppers, even with new CEO Elliott Hill vowing something different every week. The only shining star has been the Vomero 18 running shoe, which did $100 million in three months.
One of the harshest places hit is none other than China, which is Nike’s most important growth market and where sales are expected to fall a staggering 20% this quarter. Morningstar analysts say Nike’s woes run deeper than previously believed, pointing out that the company became a bit overstretched on the tech personnel front under previous management. As a solution to this problem, Nike is shutting down smaller tech offices and consolidating all of its digital work at its global headquarters in Beaverton, Oregon; along with one of its specialised technology centres in India.
Experts take: path to recovery
Retail specialists agree that these layoffs are a sign that Nike is finally accepting its recovery process will take longer than anticipated. That puts a lot of pressure on CEO Elliott Hill to show that an organisation operating with fewer resources can still be innovative. For the ongoing quarter, the company is anticipating a total sales decline ranging from 2% to 4%. Investors' reaction was muted, shares were up only 0.5% on the news.
FAQs
- Which departments are most affected?
The bulk of the 1,400 job cuts are in technology and global operations in North America, Europe and Asia.
- How will Nike bring the customers back?
CEO Elliott Hill, now aims to concentrate on core sports such as running and soccer, while moving through new shoe models at a pace the company hasn’t seen before.
- Will more layoffs happen?
Although Nike hasn’t announced additional cuts, analysts say the company is still working through its recovery and could make more changes if sales don’t rebound.
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