Nike is laying off some employees in its technology division, with plans to outsource parts of the work to third-party vendors. While the exact number of affected employees has not been disclosed, the changes were announced last week. The total number of employees at Nike was 79,400 as of February 2025.
Nike is yet to officially disclose its technology outsourcing deal.
When you search for Nike’s technology deals using OpenAI’s ChatGPT, the following results appear.
Digital Transformation Partnership with Cognizant
In April 2023, Nike expanded its tech partnership with IT services firm Cognizant. Under a five-year agreement, Cognizant will manage Nike’s global technology operations across more than 230 locations in over 40 countries. The collaboration aims to enhance customer, employee, and partner experiences through multilingual IT support, application and infrastructure services, and the implementation of advanced technologies like AI and hyper-automation.
Web3 and Gaming Collaboration with EA SPORTS
Nike’s venture into the Web3 space includes a partnership with EA SPORTS to integrate its digital platform, .SWOOSH, into future EA SPORTS titles. This collaboration will allow players to access exclusive Nike virtual creations, offering new avenues for personalization and self-expression within the gaming ecosystem.
Advanced Manufacturing Partnership with HP
Nike has partnered with HP to leverage its advanced 3D printing technology for faster and more efficient product prototyping. HP’s new 3D printers enable high-resolution part production at unprecedented speeds, facilitating Nike’s pursuit of innovative designs and rapid development cycles.
Smart Recovery Gear: Nike x Hyperice
Nike collaborated with recovery technology company Hyperice to develop innovative recovery products, including the Nike x Hyperice Hyperboot. This high-tech footwear integrates air compression massage and heat therapy to aid athletes in pre- and post-workout routines. Athletes like LeBron James and Eliud Kipchoge have endorsed its effectiveness.
The move to cut jobs at its technology division comes as Nike faces declining consumer interest and increased competition from trendier brands. In March, the company projected a sharper-than-expected revenue decline for the fourth quarter, Reuters news report said.
Earlier this month, newly appointed CEO Elliott Hill implemented leadership changes as part of efforts to revive the company’s performance and innovation.
Nike reported fiscal Q3 2025 revenues of $11.3 billion, a 9 percent decline compared to the prior year. Nike Direct sales dropped 10 percent, with Nike Digital down 15 percent and Nike Stores down 2 percent. Wholesale revenue declined 4 percent, primarily due to weaker performance in Greater China.
Nike’s gross margin fell by 330 basis points to 41.5 percent, impacted by higher discounts, increased inventory obsolescence reserves, elevated product costs, and an unfavorable channel mix, though partially offset by restructuring charges in the prior year.
Selling and administrative expenses of Nike has declined 8 percent to $3.9 billion. However, demand creation expenses increased 8 percent to $1.1 billion, largely driven by higher brand marketing spending. Net income of Nike was $0.8 billion, a 32 percent decrease year-over-year.
InfotechLead.com News Desk
