Nike-owned Converse is undergoing a significant workforce reduction and organizational overhaul as it struggles with a sharp downturn in consumer demand. On February 9, 2026, Bloomberg News reported that employees were instructed to work remotely while CEO Aaron Cain initiated “new roles and team moves,” resulting in the departure of several senior leaders and the elimination of numerous positions.
Revenue decline and competitive pressures
The restructuring follows a disastrous fiscal quarter where Converse revenues plummeted 30%. The brand is currently on track for its lowest annual revenue in 15 years, presenting a major headwind for parent company Nike Inc.
Converse’s struggles stem from several converging pressures. The brand remains disproportionately dependent on its century-old Chuck Taylor All Star silhouette – culturally iconic but increasingly outpaced by modern alternatives that prioritize comfort and technical innovation. Performance-centric competitors like On and Hoka have steadily eroded Converse’s position in the casual footwear segment by offering precisely what the Chuck Taylor lacks: contemporary design and functional superiority. Meanwhile, Nike Inc.’s broader difficulties in Greater China – now in its sixth consecutive quarter of sales declines – compound the pressure on its portfolio brands, including Converse.
The “Elliott Hill” Era
Nike’s new CEO, Elliott Hill, who took the helm in late 2024, is currently overseeing a massive “reset” of the company’s portfolio. This involves moving away from the previous “Direct-to-Consumer” strategy to rebuild relationships with wholesale partners. Following the news of the Converse layoffs, Nike shares reacted negatively, dropping 2.2% in trading on Feb. 9, reflecting ongoing investor skepticism regarding the pace of the brand’s recovery.
