"Employees of Nike's ailing Converse brand have been told to work from home this week ahead of a round of layoffs, according to a Bloomberg report. The struggling brand also is expected to be restructured, according to Bloomberg, which viewed a note sent to employees by Converse CEO Aaron Cain. Nike declined comment. It's unclear how many jobs will be eliminated."
"This is the fourth consecutive year of significant Nike layoffs. In January, Nike announced 775 layoffs at its distribution centers. Last year, Nike laid off 1% of its corporate workforce. In 2024, Nike laid off 740 Oregon workers as part of a 2% cut to its global workforce, part of a $2 billion cost-cutting effort. In 2023, Nike laid off workers in several departments, including human resources, recruiting and sourcing."
"Hill's turnaround plan, which includes refocusing the company on sports and driving sales through wholesale partners, has shown some progress, including in North America and running, Nike's biggest sales territory and most important product category, respectively. In December, Nike reported its second consecutive quarter of sales growth. But Hill has cautioned investors that Nike's comeback won't be "linear," telling stock analysts in December that Converse and the company's China business will take longer to recover."
Converse employees were instructed to work from home this week ahead of an anticipated round of layoffs and a restructuring. A note from Converse CEO Aaron Cain was viewed by Bloomberg; Nike declined comment and the number of jobs at risk is unclear. Converse reported a 30% drop in quarterly sales in December and a 19% decline to nearly $1.7 billion for the fiscal year ended May 31. Elliott Hill named Cain last July while pursuing a turnaround that refocuses Nike on sports and wholesale; some progress has appeared in North America and running. Nike is undertaking its fourth consecutive year of significant layoffs.
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