Converse, the sportswear brand owned by Nike, is set to reduce certain corporate positions and reorganize teams as it brings its operating model into closer alignment with that of its parent company, a source familiar with the matter said.
The source, who requested anonymity because the matter is private, said that "some roles are being eliminated and many more will shift in scope and reporting structure." The source added that "nearly everyone in corporate roles at Converse will experience some level of change."
Earlier reports indicated that employees at Converse were told to work from home this week while Nike implements strategic changes intended to help recapture sales growth. Those moves have included creating new roles and reassigning some staff members across teams.
As part of the reorganization, Converse will establish cross-functional squads aligned to different sports categories, mirroring a broader strategy used by Nike. The squads cited by the source include teams dedicated to sportswear, basketball, energy and apparel.
The reconfiguration follows a series of workforce reductions across Nike and its brands. In January, Nike cut 775 jobs in distribution roles, a step the company said was aimed at improving profitability and speeding the adoption of automation. Those cuts followed job reductions announced the prior year as part of a broader turnaround effort.
Converse itself previously trimmed staff as part of Nike’s cost-saving initiatives in May 2024. Under CEO Elliott Hill, Nike has been working to restore market position after losing share to competitors, and the current changes at Converse are positioned within those larger corporate efforts.
The source characterized the moves at Converse as both eliminations of certain roles and a wider shifting of responsibilities and reporting relationships across corporate ranks. Beyond forming the cross-functional squads, the detailed scope and timing of the changes were not provided by the source.
Key points
- Converse will cut and redesign corporate roles to align with Nike’s operating model, with many employees facing changes in scope or reporting.
- The brand will create cross-functional squads focused on sportswear, basketball, energy and apparel to mirror Nike’s team structure.
- These changes come amid broader workforce reductions at Nike, including 775 distribution roles cut in January and prior cost-saving layoffs at Converse in May 2024.
Risks and uncertainties
- The precise scale and timeline of the corporate role eliminations and reassignments at Converse remain unclear, creating uncertainty for affected employees and teams.
- It is uncertain how effectively the reorganization and new squad structure will translate into recaptured sales growth, the objective cited for these strategic changes.
- Continued shifts toward automation and prior workforce reductions at the parent level highlight risks for distribution and corporate support functions in the retail and apparel sectors.
Note: The information in this report is based on an account from a source familiar with the development who spoke on condition of anonymity. No additional details on timing or the total number of positions affected were provided.