Nike’s Converse faces deep job cuts amid a 30% drop in quarterly revenue

Nike-owned Converse is preparing to make deep job cuts after another sharp fall in quarterly revenue, underscoring the challenges facing the sneaker brand as its long-running slowdown worsens.

Bloomberg reported that Converse is planning significant workforce reductions, citing an internal memo from chief executive Aaron Cain. In the message, Cain said the company faced difficult decisions, including “saying goodbye to friends and teammates,” with senior executives also expected to depart.

The cuts come as Converse continues to post steep declines. In Nike’s most recent quarter, revenue from the unit fell 30% to $300 million, with sales down across all regions, extending a prolonged stretch of negative growth.

Converse has become a persistent weak spot inside Nike’s portfolio, even as the parent company pursues a broader turnaround under chief executive Elliott Hill. Nike has been working to rebuild wholesale partnerships, sharpen its innovation pipeline and restore momentum after a period of uneven demand.

The scale of the planned job reductions remains unclear. However, the move follows earlier layoffs at Nike as the sportswear group seeks to tighten costs and protect profitability.

For investors, the Converse restructuring adds another layer of uncertainty. Nike shares slipped 2.4% on Monday, though it was not clear whether the decline was directly linked to the Converse reports.

Converse represents only about 2.5% of Nike’s overall revenue, making it a relatively small contributor. Yet analysts have noted that its prolonged decline raises questions about its strategic place within the company.

Nike has previously divested other acquired brands, including Cole Haan, Hurley and Umbro. Some Wall Street analysts have suggested Converse could eventually be put up for sale if a turnaround fails to materialise.

Nike management has not publicly addressed the prospect of a divestment, though Hill recently said the company was “resetting the marketplace for Converse under new leadership,” signalling significant change ahead.

Nike has forecast continued challenges at Converse through the current fiscal year, suggesting that any recovery will take time.

Whether through restructuring, renewed product momentum or an eventual portfolio reshuffle, Converse is now a key test of Nike’s ability to restore growth beyond its core brand.