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Converse Orders Remote Work as Nike Prepares Layoffs and Reorganization

The shake-up follows quarters of steep sales declines at the brand.

Overview

  • Employees were told to work from home this week ahead of job cuts and a restructuring, according to a memo reported by Bloomberg.
  • The memos from Converse chief executive Aaron Cain describe new roles and team moves, and note that several senior executives are departing.
  • Nike declined to comment on the reported changes, and the number of positions to be eliminated was not disclosed.
  • Converse revenue fell about 30% in the latest reported quarter to $300 million, and Nike chief executive Elliott Hill has cautioned that the brand’s recovery will take longer.
  • The move follows January cuts of roughly 775 U.S. distribution-center jobs tied to consolidation and automation, as a BNP Paribas analyst note raised the possibility of a Converse sale.