Story perspectives

Nike Cuts 1,400 Jobs, Forecasts 20% China Sales Drop

4/26/2026

Summary

Nike Announces Layoffs

Nike will lay off about 1,400 Global Operations employees, roughly 2% of its workforce.
The cuts mainly target technology staff in America, Asia and Europe, after 775 distribution-center layoffs in January 2026.
Nike will consolidate technology at Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center.
The company forecasts a 2%-4% revenue decline this quarter, a 20% drop in China sales, and $300 million in cost-cutting charges.

Summary

Nike Streamlines Ops

Nike is moving Converse footwear manufacturing closer to strategic partners to enable direct collaboration.
Nike is merging materials management with its footwear and apparel supply chains to speed decision-making.
Nike’s U.S. retail network, which includes more than 300 company-owned stores, outlets and partner locations, has seen no announced closures.
Facilities dedicated to Air technology are being transformed in the United States and Vietnam to boost operational resilience.

Summary

Nike Shares Slump

Nike’s shares have fallen more than half their value over three years, reflecting market doubts about its turnaround.
Nike’s shift to direct-to-consumer sales reduced retailer presence and kept legacy models like Air Force 1 and Dunk, while rivals launched new cushioning tech, prompting On, Hoka and Anta to capture share.
Anta’s large-scale, lower-priced production in China intensified pressure on Nike, whose sales there are projected to fall about 20% this quarter.

Summary

Nike Revamps

Nike frames the layoffs as the stretch of its Win Now turnaround, to be completed by fiscal-year end after a 34% drop in net income.
Head of Operations Venkatesh Alagirisamy said the cuts require empathy and commitment.
Nike will launch a training program to upskill teams under Win Now.
Manufacturing Innovation sites in Beaverton, Oregon, St. Louis and Vietnam will be modernized as Converse groups relocate nearer factories to boost collaboration.

History

Historical Context

In January 2026 Nike cut 775 jobs at distribution centers in Tennessee and Mississippi as it pushes automation. The move echoes earlier shifts, such as Phil Knight’s 1998 pledge to tighten manufacturing standards and expand cost-saving initiatives across its global supply chain. Nike, which employs about 83,700 people worldwide, routinely restructures to protect margins amid changing market pressures.

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Nike Announces Layoffs

Nike will lay off about 1,400 Global Operations employees, roughly 2% of its workforce.
The cuts mainly target technology staff in America, Asia and Europe, after 775 distribution-center layoffs in January 2026.
Nike will consolidate technology at Philip H. Knight Campus in Beaverton, Oregon, and the Nike India Technology Center.
The company forecasts a 2%-4% revenue decline this quarter, a 20% drop in China sales, and $300 million in cost-cutting charges.

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