News: Nike cuts more technology jobs as part of $2 billion cost-saving plan

Talent Management

Nike cuts more technology jobs as part of $2 billion cost-saving plan

With annual revenue expected to remain flat, Nike continues trimming costs with another wave of tech job cuts. The restructuring follows earlier layoffs at its Beaverton HQ and is part of a $2 billion savings initiative.
Nike cuts more technology jobs as part of $2 billion cost-saving plan

Nike, the global sportswear giant, has confirmed an additional round of layoffs affecting its technology workforce, just a month after it began downsizing other tech roles. The decision is part of a broader strategy to streamline operations and sharpen its focus on digital innovation, as the company prepares for its upcoming annual earnings report.

The news was first reported by The Oregonian and covered in a story by the Portland Business Journal, a KGW news partner. According to the report, Nike said it had made “thoughtful changes focused on reducing layers and strengthening engineering capabilities.”

While the company has not disclosed the specific number of roles impacted in this latest round, the layoffs reflect ongoing efforts to reshape its organisational structure and optimise core functions. Nike stated, “We remain committed to investing in the areas that drive the most impact for Nike — including consumer-facing experiences, marketplace and Nike direct digital, and digital product innovation.”

This move builds on a major restructuring plan unveiled at the end of 2023, when Nike announced it would slash $2 billion in costs over the next three years. That strategy initially led to 740 job cuts at Nike’s world headquarters in Beaverton, Oregon.

These recent job losses come as CEO Elliott Hill approaches his first full-year earnings announcement in his new role. Hill, who began his journey with Nike as an intern, now faces the challenge of steering the brand through what it has termed a “transition year.” As previously communicated to analysts and investors, Nike expects flat revenue for fiscal year 2025 — mirroring the results from 2024, when the company reported $51.4 billion in revenue.

Amid these financial headwinds, the company has also been revamping its executive leadership. This year, Nike promoted a 30-year company veteran to the role of Chief Innovation Officer following the retirement of John Hoke. Additional top-level changes include new appointments in consumer, product and brand leadership, as well as strategy, communications, and growth initiatives.

The restructuring appears to be part of a broader digital-first strategy as Nike doubles down on its direct-to-consumer (DTC) and digital commerce initiatives. Despite flat revenue, Nike remains intent on strengthening its engineering and digital product teams to better align with evolving consumer behaviours and technological demands.

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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