Nike Inc. has begun layoffs in its technology division as part of a restructuring plan led by CEO Elliott Hill to improve efficiency and reverse declining sales amid stiff competition.

The layoffs involve enterprise and corporate strategy teams, with some tech functions being outsourced to third-party vendors to streamline operations.

Facing an 18% stock drop year-to-date and market share loss to competitors like On Holding AG, Nike aims to refocus on core athletic products and strengthen retail partnerships.

Economic pressures, supply chain risks, and shifting consumer preferences contribute to Nike’s challenging business environment, making this strategic overhaul critical for its future growth.