Nike to cut 1,400 jobs, the 2nd round of layoffs this year

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Most cuts will hit global operations – especially technology roles – across North America, Asia and Europe. (Credit: Cheng Xin/Getty Images)

Nike said it is laying off about 1,400 people, as the sportswear company fights through a years-long sales slump.

Nike to cut 1,400 jobs

Big picture view:

In a memo to employees on Thursday, ‌Chief Operating Officer Venkatesh Alagirisamy said Nike would cut jobs in global operations, with the majority in technology, in North America, Asia and Europe.

This accounts for a little less than 2% of the global workforce.

The cuts will allow Nike to better integrate its supply ⁠chains for ​materials, footwear and apparel, and to focus its technology operations ​in two main hubs – its Beaverton, Oregon, headquarters, and the Nike India Technology Center – according to Alagirisamy's memo.

CEO discusses decision to do layoffs

What they're saying:

"Across the company, we have been taking deliberate steps to strengthen our foundation, sharpen how we compete, and build a model designed to deliver long-term profitable growth. Global Operations is critical to that effort," Alagirisamy wrote. 

"Collectively, these changes will result in a reduction of approximately 1,400 roles in Global Operations, with the majority in Technology. These reductions are very hard for the teammates directly affected and for the teams around them, too."

He added: "To teammates whose roles are impacted, thank you. Your contributions have helped build this company, and we are grateful for the work, commitment, and care you have brought to Nike.

Thursday's layoffs signal "that problems ​run deeper than originally ​thought," Morningstar analyst ⁠David Swartz said, according to Reuters. "Nike should be further along in its recovery by now," he said, adding that Nike may be overstaffed "as prior management tried to solve problems ​by adding people, especially in technology."

Nike announced job cuts earlier this year

The backstory:

Nike had said in a March SEC filing ​that headcount adjustments ⁠could be coming. 

Earlier this year, the company said it was planning to cut nearly 800 jobs amid an automation push at the footwear and apparel giant's distribution centers. This primarily impacted jobs at the retailer's distribution centers in Tennessee and Mississippi as the company looked to automate more of its supply chain. 

RELATED: Nike plans to cut hundreds of jobs amid automation push

Nike also said last August that it planned to cut less than 1% of its corporate workforce amid an effort to turn around its business under the leadership of CEO Elliott Hill.