From Yahoo Finance: 2025-05-20 18:31:00

Nike’s technology business has laid off employees as part of a restructuring to refocus and streamline operations. The exact number of layoffs is undisclosed, but responsibilities are being delegated to third-party companies. CEO Elliott Hill is leading organizational reforms to bounce back from declining sales and strained ties with retail partners.

Hill, who took over in October 2024, is focusing on performance sports and wholesale distribution. However, challenges like President Trump’s trade policies and erratic consumer spending are hindering recovery efforts. Nike’s stock is down 18% this year, significantly below the broader market’s 1.4% gain as of Monday’s close.

Nike’s tech division has faced instability in recent years, with the departure of key executives and a lawsuit filed by a former employee. Despite potential growth, some believe other AI stocks offer more promise for higher returns with limited downside risk. For more information on promising AI stocks, check out the report linked in the article.

Read more: Nike Restructures the Technology Division, Laying Off Some Employees