Nike Inc’s Converse brand is planning job cuts and a broad reorganization of its operations as part of efforts to shore up sagging sales and reposition the footwear maker, people familiar with the matter said. Employees at the Nike-owned lifestyle label were told to work from home this week as leadership finalises plans that include layoffs, role changes and internal team shifts, according to a memo cited by Bloomberg News.
The restructuring is aimed at recapturing sales growth after Converse revenues plunged sharply, with the brand’s financial performance lagging in recent reporting periods, industry sources said. Nike’s overall business has been under pressure from weak consumer demand and intensifying competition, prompting repeated cost-cutting measures across the group.
Nike’s shares dipped nearly 2 per cent in trading on the latest reports as investors weighed the implications of the Converse shake-up and broader workforce reductions at the parent company. Earlier this year, Nike cut about 775 jobs at US distribution centres in Tennessee and Mississippi in a bid to accelerate automation and improve efficiency. In 2025, the company reduced corporate headcount by almost 1 per cent as part of a turnaround strategy under Chief Executive Officer Elliott Hill, who took the helm in 2024. Converse also faced job reductions in May 2024 under previous cost-savings plans.
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Nike’s fiscal 2025 results underscored challenges across its portfolio, with total revenues falling and Converse unit revenues declining roughly 19 per cent year-on-year, according to financial filings. The underperformance has drawn scrutiny from investors and analysts alike, with some questioning the long-term role of Converse within Nike’s brand mix.
Nike declined to comment on the latest plans. The Converse unit has scheduled an all-team meeting later this month to discuss the upcoming transition with staff, according to those familiar with the internal communications.
