Nike is laying off around 1,400 employees globally, with many of the cuts hitting its technology teams, as the company looks to simplify how it works and respond to a rapidly changing market.
The number itself is relatively small, less than 2% of its 80,000-odd workforce, but the message behind it is bigger. Even a brand as established as Nike is rethinking how it operates, where it invests, and what kind of workforce it needs going forward.
According to Forbes, Nike continues to command strong market valuations despite current challenges. The company trades at a price-to-earnings (P/E) ratio of 29.52, with a forward P/E of 27.40.
Its price-to-sales ratio stands at 1.42, while the price-to-book value is 4.70. On an enterprise level, Nike’s EV/EBIT is 22.32 and EV/EBITDA is 13.91.
More than just cost-cutting
These layoffs are part of Nike’s broader “Win Now” plan, which is focused on making the company quicker, more efficient, and better aligned with current consumer demands.
In an internal note, Chief Operating Officer Venkatesh Alagirisamy described the changes as a continuation of an ongoing transformation. The plan includes reshaping how tech teams function, improving manufacturing processes like its Air units, and bringing supply chain operations closer together.
There are also changes planned within its Converse business, showing that this is not limited to one department.
Why tech teams are hit the hardest
One of the more striking aspects of the layoffs is that they are heavily concentrated in technology roles. That might sound counterintuitive at a time when companies are investing more in tech but it shows a shift in how that technology is being used.
Nike is leaning more into automation and smarter systems, especially in logistics and operations. Earlier this year, it had already cut hundreds of roles at its distribution centres as machines took over more routine work.
So while the company is becoming more tech-driven, it also needs fewer people in certain kinds of tech and operational roles.
Business pressures in the background
These changes are also happening as Nike deals with slower sales and tougher competition. The company has warned that revenue could remain under pressure, particularly in markets like China.
CEO Elliott Hill is leading the effort to turn things around, but the path hasn’t been entirely smooth. The restructuring is part of trying to get the business back on stronger footing.