Nike cuts 1,400 jobs in second round of layoffs this year

Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the organization, primarily concentrated in its technology department.

In a memo from COO Venkatesh Alagirisamy, the company said the layoffs were part of Nike’s broader “Win Now” turnaround strategy to reshape its technology team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.

“Collectively, these changes will result in a reduction of approximately 1,400 positions in global operations, the majority in the technology sector,” Alagirisamy wrote. “These reductions are very hard on the teammates directly affected as well as the teams around them.”

A Nike spokesperson said the layoffs were intended to better position the organization for the current pace of the sport and accelerate its growth. The layoffs affect employees in North America, Asia and Europe and represent less than 2% of the company’s total global workforce.

“This is not a new direction,” Alagirisamy wrote. “This is the next phase of work already underway.”

Affected employees will be informed starting Thursday, Nike added.

CEO Elliott Hill is working to turn around Nike after years of declining sales. Although Hill made some initial progress, it came with a few bumps in the road.

Nike announced 775 job cuts in January, mostly at its U.S.-based distribution centers, due to the company’s efforts to accelerate its use of automation. At the time, the company said the cuts were part of Nike’s goal to return to “long-term profitable growth.”

The layoffs come on top of a series of reductions last summer that affected less than 1% of Nike’s staff as part of the company’s efforts to realign the business.

In its fiscal third-quarter earnings report last month, the retailer warned that sales would continue to decline for the rest of the year, mainly due to an expected 20% drop in China in the current quarter.

—CNBC Jessica Dore contributed to this report.