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Converse Cuts Jobs as Part of Parent Nike’s Cost-Savings Plan

Nike is undergoing a $2 billion cost-cutting plan that includes slashing 2 percent of its workforce.
A pair of converse sneakers
Converse, based in Boston, operates its own product-development, supply-chain and marketing functions specific to its business. (Converse)

Converse is cutting some jobs as parent company Nike Inc. trims its staff across divisions in search of cost savings.

Nike is undergoing a $2 billion cost-cutting plan that includes slashing 2 percent of its workforce. Layoffs have hit its Oregon headquarters across two rounds, with the process expected to conclude by the end of its fiscal year, according to an internal memo reviewed by Bloomberg News.

Converse, based in Boston, operates its own product-development, supply-chain and marketing functions specific to its business. The brand does use technology from Nike in its products.

Converse “is realigning some of our teams to better support future growth,” a spokesperson for the unit said in a statement Tuesday. “We can confirm that the total changes to Converse’s workforce were included in Nike’s overall 2 percent reduction plan, however, we were operating on a discrete timeline.”

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Nike had nearly 84,000 employees worldwide as of last May. Converse, known for its Chuck Taylor and One Star sneakers, represents about 5 percent of Nike’s total sales.

By Kim Bhasin

Learn more:

Nike to Axe Hundreds of Jobs in Bid to Save $2 Billion Amid Sales Slump

The announcement comes after the sportswear giant said sales only rose 1 percent in the three months to Nov. 30.

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