Nike Cuts Tech Jobs Amid Shift to Third-Party Vendors

Nike (NYSE:NKE) has begun laying off employees in its technology division, the company confirmed to Reuters. While the number of affected workers remains undisclosed, the sportswear giant stated that some responsibilities will be outsourced to third-party vendors as part of a strategic shift. The internal announcement was reportedly made last week.

The move was initially reported by Bloomberg News and follows a series of changes under new CEO Elliott Hill, who assumed leadership in October 2024. Hill recently restructured the senior leadership team in an effort to revitalize Nike’s innovation strategy and address declining consumer interest.

In March, Nike projected a steeper-than-expected drop in fourth-quarter revenue, highlighting the brand’s struggle to compete with trendier rivals and reignite demand. The company has faced challenges in delivering fresh product designs that resonate with today’s consumers.

As the maker of Air Jordans navigates a competitive and fast-evolving market, the decision to downsize its internal tech workforce and rely more heavily on external vendors signals a broader push for cost-efficiency and operational agility.

Nike has not provided detailed information on how many employees work in its technology division or how the restructuring will impact ongoing digital initiatives. However, the shift aligns with broader trends among global brands optimizing resources while adapting to changing consumer preferences.

The layoffs come at a time when many legacy apparel brands are reevaluating their digital strategies and supply chains to remain competitive in a tech-driven retail landscape.

Nike shares remain under pressure as investors watch closely for signs of a successful turnaround.