Nike will lay off 1400 people, most of the layoffs are in the technology team; COO Venkatesh Alagirisamy says in the memo: This is nothing new…
Nike has announced that it will lay off 1,400 employees across its global operations team, with the majority of the cuts coming from its technology division. The company’s move is part of its ongoing ‘Win Now’ action plan, which aims to streamline operations and position the brand for long-term profitable growth. In a memo to employees, Chief Operating Officer Venkatesh Alagirisamy stressed that the job cuts are not a new direction, but the next phase is already in the works. He also outlined four important areas to focus on:
- Technology Modernization: Strengthening technology footprint, streamlining structures, and focusing on two centers – Philip H. Knight Campus and Nike India Technology Center.
- Air Manufacturing Modernization: Adjustments to staffing and processes at Air MI facilities in Beaverton, St. Louis and Vietnam to improve flexibility and innovation.
- Converse Ground Game: Moving Converse footwear manufacturing and engineering resources closer to factory partners for stronger collaboration.
- Material supply chain integration: Positioning materials works closer to footwear and apparel supply chain teams for faster, synchronized decisions.
“These changes are about building a global operations organization that is more focused, more integrated with the business and better built for the speed of the game,” Alagirisamy wrote.
Nike layoffs: impact on employees
Nike also acknowledged the difficulty of the decision. The company said affected employees will be contacted directly by leaders and human resources partners. The company also promised to provide clear information and support during the transition.The layoffs come as Nike continues to make changes to make its operations more responsive, flexible and efficient. The company is investing in automation, upskilling and strengthening supplier relationships to simplify operations and accelerate innovation.
Read Nike COO Venkatesh Alagirisamy’s memorandum to employees here
Team,NIKE, Inc. Our Win Now action plan is in the final stages.Across the company, we are taking deliberate steps to strengthen our foundation, sharpen the way we compete, and build a model designed to deliver long-term profitable growth. Global operations are critical to that effort.Today, I’m sharing the next phase of that work and doing so with the entire company because of the scope and importance to our collective future.In the coming months, we will continue to evolve our global operations to better serve athletes and businesses with greater speed, simplicity and accuracy. Some of that work is happening now and some will continue over time as we align our teams, capabilities and footprint to the future needs of the company.This is not a new direction. This is the next phase of work already underway.Earlier this year, I founded NIKE, Inc. We had outlined four actions to help us become a more responsive, flexible, responsible, and efficient company: optimizing our supply chain footprint, accelerating technology deployment, investing in improving our teams, and strengthening our partner and supplier relationships. The changes we are making now are based on that work.At its core, these changes are about building a global operations organization that is more focused, more integrated with the business, and better built for the speed of the game.In the coming weeks, several significant changes to global operations will take effect. These actions will result in changes to certain team structures, work locations, and headcount.
- Technology modernization. We’re reshaping our technology team to align with the business, build better teams, and accelerate what matters most. This means strengthening our technology footprint, streamlining our structure to move forward with greater speed and focus, and doubling down on where our work is done by focusing on two strategically important centers – the Philip H. Knight Campus and our Nike India Technology Center. These are intentional steps taken to create a streamlined, faster, more connected technology organization – built for the consumer, the athlete, and the business.
- Air Manufacturing Modernization. We’re modernizing how work gets done at our Air Manufacturing Innovation (Air MI) facilities in Beaverton, Oregon; St. Louis; and Vietnam by increasing flexibility, streamlining processes and adjusting staffing to suit business needs. These changes will help us remain flexible with changes in demand, accelerate future innovations, and continue to provide the product quality athletes have come to expect from Nike.
- Converse Ground Game. We are moving some Converse footwear manufacturing and engineering resources closer to our factory partners to enable stronger real-time collaboration and better support the brand’s needs going forward.
- Material supply chain integration. We are bringing content closer to our footwear and apparel supply chain teams while continuing to build on the valuable capabilities we already have. It strengthens how we work from raw material to finished product, enabling faster, more synchronous decisions and unprecedented innovation across our best-in-class manufacturing network.
Collectively, these changes will result in the reduction of approximately 1,400 roles across global operations, the majority of which will be in technology. These cuts are extremely difficult for the teammates directly affected and also for the teams around them.Part of doing the right thing is being direct. The other part is to make sure that people are treated with care. Teammates whose roles have been impacted will hear directly from their leaders and HR partners from today, and we will work to ensure they have clear information and support during this transition.Thank you to the teammates whose roles have been impacted. Your contributions have helped build this company, and we are grateful for the work, commitment, and care you bring to Nike.For the wider team, such moments require professionalism, empathy and a shared commitment to each other. These changes are meant to make the company less complex and more responsive. As we look ahead, that means simplifying parts of how we work, using more advanced automation where it helps us do better work, and building an even stronger end-to-end foundation for future growth. I hope that these efforts will continue beyond our Win Now action plan.The operations team at NIKE, Inc. has played, is playing and will play a vital role in helping the company strengthen its foundation and will continue to play a vital role in the company’s comeback.Thank you for your leadership, your dedication to your athletes, and your dedication to each other.Venkatesh AlagirisamyEVP, Chief Operating Officer