Corporate skate shoe giant Nike is preparing for another round of layoffs as the company continues restructuring its business, creating more uncertainty for the brands and employees connected to its skateboarding operations.
The announcement came Thursday with Nike’s latest quarterly earnings report. The company said it will eliminate an unspecified number of jobs, reorganize its sales territories and open a new campus in India. Decisions involving affected positions are expected to begin in 2027.
Nike shares fell more than 8 percent in after hours trading following the report, reaching their lowest level in 13 years. Quarterly sales came in at $11.2 billion, below the $11.3 billion analysts had expected.
The latest cuts follow 1,400 layoffs announced earlier this year and represent Nike’s fourth consecutive year of staff reductions. Chief Financial Officer Dave Denton said the restructuring is expected to save $2.5 billion over four years, while costing about $1 billion, along with $300 million in expected severance.
The news is relevant to skateboarding because Nike SB and Converse CONS sit within a company that is now taking a closer look at costs, products and staffing.
We previously reported on cuts affecting Converse CONS, adding to questions around the future direction of Nike’s skateboarding business.
READ MORE: Converse CONS Cuts the Team, Milton Martinez Closes the Chapter After 15 Years
Nike SB has built a significant place in skateboarding through models such as the Dunk Low Pro, Blazer and Janoski, along with its professional team and relationships with skate shops. CONS has also maintained a presence in skate footwear through its own team, shoes and collaborations.
Nike CEO Elliott Hill is now trying to reshape the company's wider footwear strategy. One of his concerns is the number of retro sneakers Nike has been releasing.
“We’re going to get back to leading the scarcity model that we created,” Hill said, explaining that Nike has been supplying too much of its iconic retro footwear.
That approach could be relevant to skate shoes, where limited releases and collaborations can have a strong effect on demand and relationships with independent retailers. Skate shops have traditionally played an important role in introducing new footwear to the skate community.
Hill also acknowledged problems across several Nike businesses, including Jordan, sportswear and China. Sales in China fell 26 percent compared with the same quarter last year as Nike deals with stronger competition from local brands.
The company is placing greater attention on performance footwear, particularly running, as part of its broader recovery plan. Its new strategy, called “Pace,” builds on the previous “Sport Offense” structure that organized Nike around athletic categories.
READ MORE: Corporate Skate Shoe Giant Nike Adds LVMH Luxury Dynasty Heir Alexandre Arnault to Its Board
For Nike SB and CONS, there has been no announcement that the latest restructuring will result in specific product cancellations, team reductions or further layoffs within those divisions.
That distinction is important. Nike has announced companywide cuts, while the details of how those decisions will affect individual skate operations have not been disclosed.
Still, the changes come at a time when skate footwear remains highly competitive. Nike SB and CONS are competing for skaters and retailers alongside Vans, adidas Skateboarding, New Balance Numeric and a growing group of independent brands.
The direction Nike takes from here could affect everything from product releases and distribution to marketing and relationships with skate shops.
For now, the company is focused on cutting expenses and rebuilding demand. Hill acknowledged that the process will take time as Nike works through problems across several parts of its business.
For the skate industry, the next phase will be worth watching, particularly as more details emerge about how Nike’s restructuring affects Nike SB and Converse CONS.