Nike is taking the layoff route again this year, and this means job cuts for less than 1% of its corporate workforce. The company was recently reported to have 77,800 employees, but it remains unclear just how many from this expansive workforce will be affected by the cuts. Nike previously made some substantial changes to its business model under former CEO John Donahoe, revamping its product segmentation by gender rather than by product categories targeted at sportspeople. This change was largely blamed for some of Nike’s struggles.
While leaders at the organization made this decision, it appears the corporate grunt workers are ultimately set to face the repercussions, as Nike’s realignment plans have led it straight to layoffs. As Nike aims to “turn the page” under CEO Elliott Hill, HR’s ability to foster resilience, preserve trust, and drive strategic alignment will shape the company’s next chapter.
The time is ripe to use Nike’s realignment as more than a pathway to layoffs, building greater commitment to the company goals. (Image: Pexels)
Nike Layoffs Set to Target Its Corporate Workforce: Putting the Data Into Context
Nike’s August 2025 layoffs are likely to affect less than 1% of its corporate staff, but the numbers are anything but insignificant for the workers who are set to get the boot. This is a smaller force than the 2% layoffs announced earlier this year, where around 1,500 jobs were affected by the restructuring. While we don’t yet know exactly how many jobs that will add up to, we do know that the company’s EMEA (Europe, Middle East, and Africa) operations and Converse businesses will see their fair share of executions.
Corporate teams in the US and Canada received an email from leaders alerting them to the incoming cuts, asking that they work from home until September 8, 2025. Nike’s realignment layoffs are expected to begin next week, when employees will receive communications regarding the future of their roles. Following that, a team meeting is expected to take place on September 10, with new roles established by September 21.
The clear timeline does provide some clarity for workers, but we expect that many are set to have an anxiety-riddled few weeks ahead of them.
What Do We Know About Nike’s Severance Package?
HR has a key role to play during layoffs, from managing conversions regarding terminations to ensuring severance packages are fairly distributed without a hitch. While Nike has not released the specific terms of the severance packages offered to employees, historically, these packages have been standardized according to the employee’s band level and tenure within the organization.
From a minimum package of 4 weeks’ pay to a maximum of 48 weeks of pay, there is a significant variation in the deals offered. According to data available from Fired.fyi from January, Nike typically subsidizes COBRA costs for approximately six months following the departure of an employee. The company also offers a few other benefits to exiting employees, but it’s unclear if the same terms will be available to Nike’s laid-off corporate workforce.
HR now has a dual role to play in supporting outgoing employees while building resilience among the remaining workers who are left to lead the company forward.
What Nike’s Corporate Job Cuts Mean for HR
Nike is restructuring its jobs and roles, introducing more clarity to the positions in preparation for a shift in its product segmentation to sports-specific categories. Not only does this mean a change in the division of products, but it also mandates a shift in the talent distribution at the organization. HR’s role in managing these altered positions and segregating the workforce will be paramount.
HR will have much to do in organizing the re-skilling of employees for their sports-focused roles, reintroducing Nike’s “athlete mindset” and Hill’s “Win Now” strategy to the workforce. Layoff anxiety remains high among workers across industries, and for good reason. It is up to HR to focus on addressing morale and boosting engagement in the post-layoff workforce to ensure they don’t remain arrested by the “survivor’s guilt” that comes with watching their colleagues clear their desks.
Repeated layoffs risk damaging Nike’s reputation as an employer of choice, especially amid employee frustration over transparency. The time is ripe to use Nike’s realignment as more than a pathway to layoffs. It’s time to build greater commitment to the company’s renewed goals. Before a campaign comes in to inspire loyalty among customers, Nike will have to campaign to bring its employees on board with its shifting strategy.
What do you think about the Nike’s 2025 layoffs and the focus on its corporate workforce? Let us know. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
