Nike to trim less than 1% of its corporate workforce

Nike Undergoes Major Changes Under New CEO

Nike, the globally recognised sportswear giant, is currently undergoing significant changes under the leadership of its new CEO, Elliott Hill. Since assuming the role last October, Hill has made sweeping changes to Nike's leadership team and structure.

In a bid to connect more deeply with athletes and consumers, Nike has recently announced it would organise its teams around key sports instead of categories like women's, men's, and kids. This shift has led to cuts at Nike, with the retailer laying off a small number of tech employees in May this year and a larger workforce at the start of 2024, resulting in over 1,600 employees being let go.

The new structure is designed to put sport and sport culture back at the center of Nike's operations. To achieve this, Hill aims to correct the flow of key footwear franchises like Dunk and Air Force 1. The shift to sports-based teams has been a driving force behind several long-time executive departures, including key figures such as a CMO, CFO, and several senior vice presidents.

However, not all changes have been about reductions. Some Nike veterans have returned as part of the changes made by Elliott Hill, with leaders being identified to head up the sports-based teams in July. These appointments are intended to help Nike right its relationships with retail partners, who have felt abandoned due to Nike's DTC-first strategy.

Elliott Hill has vowed to address this issue and has made it clear that he aims to correct the sales declines Nike is currently battling. A spokesperson for Nike stated that the realignment is aimed at setting Nike up to win and create the next great chapter for the company.

In addition, the retailer has vowed to focus on its relationships with retail partners, with Hill expressing his intention to correct the flow of key footwear franchises like Dunk and Air Force 1. This focus on partnerships is part of a broader shift at Nike under CEO Elliott Hill, with the layoffs being just one aspect of the changes being implemented.

As Nike continues to evolve under its new leadership, it remains to be seen how these changes will impact the company's future success. One thing is certain, however: Nike is committed to putting sport and sport culture at the heart of its operations, and it is clear that Elliott Hill is determined to steer the company in this direction.