Nike has laid off less than 1 percent of its corporate team as chief executive Elliot Hill carries out his “sport offense” strategy, aimed at refocusing the company on product innovation and marketing around sports categories like running.
The layoffs, first hinted at during Nike’s fourth-quarter earnings in June, were communicated to employees on Aug. 28 via an internal memo signed by Hill and other senior leaders.
“Some of us will take on a new position or level, report to a new manager or join a new team,” the memo read. “A small number … will depart, and we’ll honor the contributions they’ve made here.”
In June, Hill told analysts that the brand would no longer organise corporate teams at Nike, Jordan, and Converse around categories like men’s, women’s and kids.’ Instead, employees will be organised into “sports-obsessed teams,” who create “the most innovative and coveted product, footwear, apparel and accessories for the specific athletes they serve,” he said at the time.
The Aug. 28 memo noted that leaders were identified in July to oversee the newly structured teams.
“The moves we’re making are about setting ourselves up to win and create the next great chapter for Nike,” the company said in a statement. “This new formation is built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer, and to give us the space to create what only Nike can.”
In May, Nike downsized its technology department and saw the exits of several senior leaders as part of the ongoing reorganisation.
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