Media reports indicate that Nike, the world's largest sports brand, is scaling back its technology department and laying off some employees to realign the management's business focus.
According to sources familiar with the matter, the layoffs involve technical staff in the strategic enterprise and corporate functions departments, which are responsible for managing critical business processes. One insider told the media that Nike is outsourcing some related work to third-party vendors. A spokesperson for Nike confirmed the departure of technical staff.
Since returning as CEO of Nike in October last year, Elliott Hill has made several personnel adjustments at the company's senior management level, appointing new leaders in various departments, including strategy, human resources, and sports marketing. Muge Dogan, who previously worked at Amazon, continues to serve as Nike's Chief Technology Officer.
Nike's technology department experienced significant turmoil in 2023 when the company's Chief Digital Information Officer suddenly left amid bribery allegations. A former employee has filed a lawsuit in Oregon regarding the incident.
Currently, Hill is working to drive Nike's recovery. Reports have indicated that after previous management's over-reliance on lifestyle products and alienation of retail partners, Nike's sales growth has stagnated, facing not only slowing sales and margin pressure but also increasing competition from smaller running shoe brands like On and Hoka. Additionally, Nike predicted last month that revenue would see a &#34;mid-teens percentage&#34; decline in the current quarter ending in May.
Nike is attempting to regain growth momentum by refocusing on its core sports business and wholesale channels; however, this effort has been disrupted by the trade war initiated by former President Trump and the instability of U.S. consumer spending. Since the U.S. announced &#34;reciprocal tariffs&#34; on Vietnam and other countries in early April, although the tariffs have been suspended, they have already disrupted global supply chains and undermined investor confidence. According to regulatory filings, about half of Nike's branded shoes are produced in Vietnam.
Nike fell 1.63% on Monday, closing at $62.08. As of the close on Monday, Nike's stock price has dropped 18% this year, significantly underperforming the S&amp;P 500 index's 1.4% gain during the same period.
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According to sources familiar with the matter, the layoffs involve technical employees in strategic enterprises and corporate functions at Nike, which are responsible for managing key business processes. Nike is outsourcing some of the related work to third-party vendors

- Nike is reducing the size of its technology department and laying off some employees to realign management priorities.  
- The layoffs affect strategic and corporate function tech staff, with some work being outsourced to third-party vendors, as confirmed by a company spokesperson.  
- CEO Elliott Hill has made several leadership changes since his return, aiming to revive the company amid stagnant sales growth and increasing competition, while also facing challenges from trade tensions and supply chain disruptions.

In response to performance challenges, Nike lays off technical team employees and adjusts its corporate strategic focus