Converse, a subsidiary of Nike, is set to cut jobs as part of Nike’s broader $2 billion cost-saving initiative, a knowledgeable source disclosed on Tuesday. Announced in December, Nike’s three-year plan aims to economize through strategies like product supply tightening and management streamlining. The footwear leader has faced challenges with cautious consumer spending and a strained wholesale business, leading to reduced supplies of key products, including Air Force 1 and Pegasus sneakers.
Nike has already initiated several layoffs this year, reducing its workforce by about 2 percent in February, impacting over 1,600 jobs. Additionally, about 740 employees at Nike’s Oregon headquarters were let go in April as part of this restructuring effort. The company also forecasts a slight decline in revenue for the first half of fiscal 2025, anticipating a low single-digit percentage decrease.
