Nike, the global sportswear giant, has initiated another round of layoffs in its technology division as part of a sweeping $2 billion cost-saving plan announced in December 2023. This strategic restructuring, set to unfold over three years, aims to streamline operations and bolster profitability amid softening consumer demand and economic headwinds. The latest cuts, reported on June 11, 2025, target staff in strategic enterprise and corporate functions, with an unclear number of roles eliminated.
The technology division has been a focal point for Nike’s cost-cutting efforts. In May 2025, Nike confirmed layoffs in this sector, shifting some work to third-party vendors to enhance efficiency. These reductions follow a broader pattern, with Nike slashing 2% of its workforce—approximately 1,600 jobs—across various divisions, including 740 at its Oregon headquarters in April 2024. The company’s technology workforce faced additional disruption in 2023 when its chief digital information officer departed amid bribery allegations, complicating efforts to stabilize the division.
Nike’s cost-saving initiative responds to a challenging market. The company reported a 9% drop in third-quarter sales for fiscal 2025, totaling $9.1 billion, down from $10.1 billion the previous year. Currency-neutral sales fell 7%, reflecting cautious consumer spending and a pressured wholesale business. Nike’s shares have declined 18% in 2025, underperforming the S&P 500’s 1.4% gain. Chief Financial Officer Matt Friend cited “increased macro headwinds” in Greater China and Europe, alongside a 22% drop in Nike Digital sales in the region, as key factors.
Under CEO Elliott Hill, who assumed leadership in 2024, Nike is refocusing on athletic performance and wholesale channels to recapture growth. The company has scaled back its lifestyle product emphasis, which alienated retail partners, and is investing in high-growth areas like running, women’s apparel, and the Jordan brand. The cost-saving plan includes simplifying product assortments, increasing automation, and reducing management layers, with $400 million to $450 million in restructuring charges, primarily for severance, expected in early 2024.
The technology job cuts reflect a strategic pivot. Nike is leveraging third-party vendors to handle certain tech functions, aiming to optimize costs while maintaining innovation. Muge Dogan, a former Amazon executive, remains chief technology officer, overseeing this transition. However, the layoffs have sparked concerns about morale and Nike’s ability to compete in a tech-driven retail landscape, especially as rivals like Adidas and Puma also face weaker demand.
Economic and geopolitical factors add complexity. U.S. President Donald Trump’s trade policies, including potential tariffs, threaten to raise costs, while inconsistent U.S. consumer spending challenges Nike’s recovery. Globally, China’s uneven economic rebound has dampened sales, with retail growth driven by cars and dining rather than apparel. Nike’s cautious outlook projects a low single-digit revenue decline for the first half of fiscal 2025.
Critics argue Nike’s aggressive cost-cutting risks long-term innovation, particularly in sustainability, a priority for younger consumers. The company has not detailed investments in recyclable products, despite consumer demand for eco-friendly options. Meanwhile, the $2 billion savings are earmarked for reinvestment in growth areas, but analysts warn that missteps could erode market share.
Nike’s restructuring underscores the sportswear industry’s broader challenges. As it navigates layoffs and economic uncertainty, the company’s ability to balance efficiency with innovation will determine its path forward.
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