In a bid to streamline operations and cut costs, Converse, under its parent company Nike, is trimming its workforce. The job reductions are reportedly a part of Nike’s broader restructuring plan.
Nike’s $2 billion cost-cutting initiative aims to reduce its workforce by two per cent, and Converse is also affected. The layoffs are not limited to Nike’s Oregon headquarters, where over 700 job cuts are expected, but extend to Converse’s Boston base as well.
In December 2023, the sports brand had revealed its intention to launch a cost-saving initiative that will bring down expenditure by $2 billion in three years’ time. At the time, the company had also revealed that it would be spending about $400 million in severance pay to the impacted employees. Two months later, in February 2024, Nike had revealed its plans to do away with two per cent of its global workforce. That is, it was gearing to axe at least 1,600 jobs. It was also revealed that those working at the Nike stores and distribution centres, as well as the members of the innovation team were expected to be spared.
Converse, renowned for its iconic Chuck Taylor and One Star sneakers, maintains its own product development, supply chain and marketing functions tailored to its business. While it utilises Nike’s technology in its products, it operates independently.
As of last May, Nike boasted a global workforce of nearly 84,000 employees. Converse, contributing about five per cent to Nike’s total sales, remains a significant subsidiary within the Nike portfolio.
