Nike’s latest round of job cuts — its second in 2026 — points to structural challenges that run deeper than management first acknowledged.
Nike is cutting approximately 1,400 positions in its Global Operations division — the majority in technology — as the sportswear company pushes deeper into a restructuring effort that has repeatedly taken longer and cost more than originally planned.
The announcement, made Thursday in an internal memo from Chief Operating Officer Venkatesh Alagirisamy, is the company’s second round of job cuts in 2026, following the elimination of 775 distribution center roles in January. Together, the reductions bring total headcount losses under CEO Elliott Hill’s tenure into the thousands.
Tech team grew to solve problems. Now it’s being cut back
Technology is the largest component of the restructuring. Nike is consolidating its tech operations around two hubs — the Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center — while streamlining team structures and reducing overall headcount. In his memo to staff, republished in full yesterday by Business Insider US, Alagirisamy described the moves as building “a leaner, faster, more connected Technology organization.”
David Swartz, analyst at Morningstar, framed the cuts bluntly, arguing that Nike may be overstaffed and that prior management “tried to solve problems by adding people, especially in technology.” Swartz was equally direct about the pace of recovery: “Nike should be further along in its recovery by now.”
The cuts were not entirely unexpected. Nike had flagged the possibility of headcount adjustments in a March filing with the US Securities and Exchange Commission (SEC).
A ‘Win Now’ plan that keeps moving the goalposts
Alagirisamy described the changes as the next phase of the company’s “Win Now” operational agenda, the Nike strategic program organized around five priorities: culture, product, marketing, marketplace and in-person presence. “NIKE, Inc. is in the final stretch of our Win Now action plan,” he wrote, while adding that the operational work would not stop there: “I expect these efforts to continue beyond our Win Now action plan.”
Hill acknowledged in the latest earnings call that execution is proving harder than anticipated, saying the turnaround was taking “longer than I would like.” The operational cuts reinforce how much further the company still has to travel. Nike shares have shed more than half their value over the past three years. Margin pressure has been persistent, driven by the need for steep discounts to clear excess inventory built up during the pandemic era.
The company has struggled to generate consistent product momentum across the wider portfolio. Hill has previously pushed for a steadier flow of newness, but Nike’s recovery remains uneven across categories and geographies. One clear exception is the Vomero 18 running shoe, which became a $100 million business within 90 days of launch.
China decline adds urgency to the restructuring
Nike’s near-term financial outlook remains pressured. The company has guided for a 2 to 4 percent drop in revenues in the current quarter, with China — where it faces intensifying competition from domestic brands — expected to decline by 20 percent in the same period.
Beyond the workforce reduction, the restructuring covers several operational areas: manufacturing modernization at Air Manufacturing Innovation (Air MI) facilities in Beaverton, St. Louis and Vietnam; a restructuring of Converse footwear manufacturing and engineering resources to bring teams closer to factory partners; and the integration of materials supply chain functions into the broader footwear and apparel supply chain teams. Nike has not disclosed the expected cost savings from the cuts.
