Nike Restructures the Technology Division, Laying Off Some Employees
The technology business of NIKE, Inc. (NYSE:NKE) has laid off employees as part of a larger restructuring that aims to refocus objectives and streamline operations. Employees in the company's corporate functions and strategic enterprise divisions, which are in charge of important business process management, have been impacted by the layoffs. Some responsibilities are being delegated to third-party companies, according to sources familiar with the situation.
A team of trainers and athletes displaying a wide range of athletic and casual footwear.
Although the exact number of layoffs was not revealed, a NIKE, Inc. (NYSE:NKE) representative acknowledged the company's tech department's staff reduction.
The action comes after the firm underwent organizational reforms under CEO Elliott Hill, who took over as leader in October 2024 after returning from retirement. Since then, Hill has stepped up as head of strategy, human resources, and sports marketing, among other divisions. Former Amazon employee Muge Dogan is still the Chief Technology Officer at NIKE, Inc. (NYSE:NKE).
In recent years, the company’s tech division has experienced instability. Following the departure of its Chief Digital Information Officer in 2023 due to bribery allegations, a former employee filed a lawsuit against the firm in Oregon.
The appointment of Elliott Hill as CEO represents a strategic change for NIKE, Inc. (NYSE:NKE), which is trying to bounce back from declining sales brought on by an excessive focus on lifestyle products and strained ties with its retail partners. Although Hill is guiding the business back toward performance sports and wholesale distribution, President Donald Trump's trade policies and the erratic spending of American consumers are impeding recovery efforts.
NIKE, Inc. (NYSE:NKE)'s stock is down 18% so far this year, much below the 1.4% gain of the broader market as of Monday's close.
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