According to a report by the media company Bloomberg, the US brand Converse is initiating a restructuring process that also includes job cuts. Accordingly, employees of the label, which belongs to the sporting goods group Nike Inc., were instructed to work from home. According to the article, the planned reorganization also includes the creation of new roles for the remaining employees and a reorganization of the teams.
In a memo seen by Bloomberg News, Converse CEO Aaron Cain said the brand “had to make difficult decisions.” These would include “saying goodbye to friends and teammates.” The document confirmed impending layoffs, according to the report. However, the exact number of positions to be eliminated was not mentioned.
Change in leadership and decline in sales
The planned restructuring follows the departure of several senior Converse executives. This was noted in a separate memo, which Bloomberg said was also available. Converse is currently under significant financial pressure. Elliott Hill, the CEO of Nike Inc., took office in 2024 to initiate a company-wide turnaround.
Converse’s recent performance highlights several key challenges. Sales fell by 30 percent in the last quarter. Brand sales are currently heading towards a 15-year low. Attempts to diversify the range with new styles have so far failed. In addition to declining sales in China, Converse has become one of the weakest segments in Nike’s portfolio.
Realignment of the Nike Group
During a call with analysts in December, Hill said the company would “realign the market for Converse under new leadership.” Despite efforts to stabilize Nike’s North American operations and running division, shares of the company fell 7 percent in the 12 months ended Friday. On Monday they fell another 2.2 percent following the latest news.
The layoffs at Converse follow austerity measures at the parent company. At the beginning of the year, hundreds of employees in the distribution centers were laid off. The group had already cut around one percent of its total jobs in 2025. Converse has scheduled a meeting with all teams at the end of the month to discuss the upcoming transition, according to the Bloomberg report.
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