Nike Braces Converse Employees for Job Cuts as Shoe Sales Plunge

Converse employees were instructed to work from home ahead of layoffs and restructuring at the struggling Nike Inc. brand.

The changes include new roles and team moves for some staff, according to the note from Converse chief executive officer Aaron Cain, which was viewed by Bloomberg News. Converse “also had to make difficult decisions” which will include “saying goodbye to friends and teammates.”

The memo didn’t indicate how many positions were being eliminated. Nike declined to comment.

Cain announced that multiple senior executives are departing, according to an earlier memo also viewed by Bloomberg. Converse told employees it would hold an all-team meeting later this month.

Converse is struggling under Nike chief executive officer Elliott Hill, who took over in December 2024 to help turnaround the sportswear company. The brand has remained heavily reliant on its Chuck Taylor shoe, while forays into other styles haven’t taken hold. The brand’s sales plunged 30 percent in the latest quarter.

“We’re resetting the marketplace for Converse under new leadership,” Hill told analysts in December.

Nike laid off hundreds of employees at distribution centres earlier this year as well as less than 1 percent of corporate staff in a restructuring last year.

Shares of Nike were down 1.6 percent as of mid-day trading on Monday.

By Lily Meier

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