Nike subsidiary brand Converse joins the layoff plan –
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Nike subsidiary brand Converse joins the layoff plan

2024-05-17 08:51:23 Fibre2Fashion

Bloomberg reported on May 15th that Converse has confirmed that it will officially initiate layoffs as part of Nike's overall business restructuring plan.

In a statement, Converse said, "We are reorganizing some teams and optimizing work processes to better support future development." "We can confirm that the changes in Converse's workforce are included in Nike's overall 2% layoff plan, but we are operating on a separate timeline."

Based in Boston, Converse has its own product development, supply chain, and marketing departments. Nike has not confirmed how many positions at Converse are affected, as the company acquired Converse for $305 million in 2003.

In Feb of this year, Nike confirmed a 2% layoff affecting over 1,600 jobs. In Mar, the company warned that revenue for the first half of fiscal year 2025 would shrink by a low single-digit percentage. In Apr, Nike disclosed in a filing submitted to the state of Oregon that 740 employees would be laid off in two rounds before Jun at its global headquarters. As early as Nov of last year, several Nike employees shared on LinkedIn news of their layoffs, at a time when the company was undergoing extensive restructuring in its design and marketing departments. As of May last year, Nike had nearly 84,000 employees worldwide.