Nike cuts jobs at sneaker brand Converse

Judgment day at Converse: parent company Nike will be cutting staff as part of a strategic restructuring. Sales at the sneaker brand continue to disappoint, even as Nike itself recovers.

Working from home as a precursor

Converse employees were told this week that they would have to work from home while management finalizes a reorganization plan. According to an internal memo obtained by Bloomberg, teams will be reorganized and new positions will be added. But CEO Aaron Cain hints that “difficult decisions” will also have to be made, which would mean forced departures.

However, there have already been previous rounds of layoffs within the Nike group. At the end of last summer, almost 1% of office staff were laid off, and there were also significant job cuts in 2024: in February of that year, Nike cut 2% of its global workforce (more than 1,600 jobs), while Converse carried out its first round of layoffs in May 2024 as part of a cost-cutting plan.

While other divisions of Nike, led by CEO Elliott Hill, are now returning to growth, Converse is lagging behind. In the last quarter, the brand’s sales fell by as much as 30%. The brand is struggling with an outdated image and fierce competition. For example, Converse is finding it difficult to differentiate itself in a market that is increasingly focused on technological innovation and sustainability.