Visa Embedded Lending June 2024 Banner

‘Department of Nike Archives’ Impacted by Companywide Layoffs

Nike’s layoffs have reportedly impacted employees in the company’s archive that stores shoes, gear and other artifacts from the brand’s history.

Some members of the small team at the Department of Nike Archives (DNA) have been laid off, Bloomberg reported Thursday (May 30).

DNA was started in 2006, is housed in Nike’s headquarters in Oregon and stores 200,000 items, according to the report. The archive is closed to the public and is used only by designers, researchers and marketers.

Companywide, Nike has announced plans to lay off 2% of its global workforce and has so far laid off 750 employees across departments at its Oregon headquarters, per the report.

It was reported in February that Nike’s decision to reduce its workforce by approximately 2% equates to more than 1,500 jobs.

The move comes at a time when consumers’ ongoing financial pressures make it harder for them to justify nonessential purchases and is part of the company’s broader restructuring plan that aims to cut costs in the face of weakening demand for its shoes.

“This is how we will reignite our growth, Nike CEO John Donahoe reportedly said in a memo viewed by CNBC. He later added, “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

During an earnings call held in March, Donahoe said his outlook for Nike in the short-term is driven by several factors, including a new focus on the retail consumer. He said the company is investing in a blend of product development, brand storytelling and unique retail experiences.

“The way I think about the next fiscal year is that we are taking our product portfolio through a period of transition,” Donahoe said. “We talked about this last quarter, in terms of our focus on scaling, newness and innovation and the green shoots that we were seeing in terms of the way the consumer is responding to the newness that we’re bringing to market. This quarter only gave us more confidence in that. It’s how we’re going to create greater impact and distinction from a brand point of view.”