Nike Cuts 1,400 Tech Roles and Faces $1.5 Billion in New Tariffs
Nike will eliminate 1,400 technology roles as part of a reorganization consolidating tech hubs in Oregon and India and modernizing US and Vietnam manufacturing to boost efficiency. New US tariffs will tack on $1.5 billion in product costs, further pressuring margins after a 32% net profit slump.
1. Supply Chain Reorganization and Job Cuts
Nike announced elimination of 1,400 roles, mostly within its technology team, consolidating core tech functions at its Oregon campus and India center. The company is relocating Converse footwear manufacturing closer to factory partners and modernizing Air manufacturing facilities in the US and Vietnam to drive greater operational agility and cost efficiency.
2. Tariffs and Margin Pressure
New US tariffs will add $1.5 billion to Nike’s product costs, intensifying margin pressure following a 32% net profit decline in December. Nike’s cost-management initiatives, including automation and streamlined supply chains, aim to mitigate the financial impact of higher duties and support its Win Now turnaround plan.