Nike has begun layoffs in its technology division as part of a new strategy aimed at streamlining operations and regaining market competitiveness.
Reasons for Layoffs
Nike has initiated layoffs in its technology division as part of the restructuring led by new CEO Elliott Hill. The layoffs are aimed at streamlining operations and shifting certain technological functions to third-party vendors to help the company combat declining sales.
Market Situation for Sportswear
In 2025, the sportswear industry faced significant challenges, including tariff-related uncertainties and shifting consumer preferences. For example, Swiss brand On, backed by Roger Federer, has significantly increased its market share, while Nike's stock has dropped 18% year-to-date.
Nike's Future
Nike continues to face challenges related to changing consumer preferences and economic instability. The success of its restructuring will depend on the company’s ability to balance cost-cutting with investments in product development and digital innovation.
Nike's restructuring amid a crisis in the sportswear market requires a careful approach. It is important not only to optimize costs but also to preserve innovative capabilities to regain competitive positioning.
