Nike-owned Converse to cut jobs as it reorganizes its teams, Bloomberg News reports

Feb 9 (Reuters) - Nike-owned ⁠Converse brand's employees ⁠were ‍instructed to work from home this week as the sportswear giant makes strategic changes ‍to recapture sales growth, Bloomberg News reported on ​Monday, citing a memo.

The changes include new roles and team moves ​for some staff, according to the note from Aaron Cain, Converse's chief executive officer, the report added.

Nike's shares were down nearly ​2% in afternoon trading.

Nike had laid off 775 employees, impacting distribution center roles in Tennessee and Mississippi, ​in a bid to boost profits and accelerate its use of automation, a ‌source familiar with the matter told Reuters in late January.

The company, currently facing business struggles, ​is trying to reestablish itself ⁠as the world's leading sportswear brand after losing market share to rivals. It has ‌undergone several rounds of layoffs in recent years.

In August last year, Nike cut a little less than 1% of its ‌corporate workforce as part of its turnaround efforts under CEO Elliott ‌Hill, who took over the top job in 2024. It had previously announced it would cut 2% of its jobs — more ‍than 1,600 in total — in February 2024. Meanwhile, Converse had previously cut jobs ⁠as part of its parent company's cost-savings plan in May 2024.

Nike declined to respond to a Reuters request for comment.

(Reporting by Neil J Kanatt and Koyena Das in Bengaluru; Editing by Alan Barona)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Shein returns to profit in second quarter
• India poll chief Gyanesh Kumar under pressure over alleged manipulation of electoral rolls
• Satellite firm Astro Digital to go public in $587 million SPAC deal