Nike to Cut 1,400 Jobs as China Revenue Falls 20% and Global Sales Slump
Nike will eliminate about 1,400 roles, representing just under 2% of its global workforce, primarily from technology functions across North America, Asia and Europe to simplify operations after a years-long sales slump. The company forecasts a 2%–4% sales decline this quarter with Greater China revenues expected to drop about 20%.
1. Job Reductions
Nike announced a plan to cut approximately 1,400 positions, or just under 2% of its global staff. The bulk of the reductions will affect technology teams in North America, Asia and Europe, following a previous round of 775 cuts in January aimed at accelerating automation.
2. Sales Outlook and Regional Performance
The company expects overall sales to decline by 2%–4% this quarter, with Greater China revenues projected to fall about 20% after a recent 7% drop to $1.62 billion. While North America may see modest growth, it is likely to be offset by ongoing weakness in China and the Converse segment.
3. Operational Streamlining Initiatives
Nike plans to centralize its supply chain operations for materials, footwear and apparel and consolidate technology functions into two hubs: its Beaverton, Oregon headquarters and the Nike India Technology Center. These measures aim to reduce complexity and margin pressure caused by surplus inventory and uneven product launches.