CNBC, a leading U.S. business media outlet, reported on August 28 (local time) that Nike, the world's largest sports brand, is proceeding with additional layoffs.

CNBC stated that the exact number of layoffs remains unclear, but it is expected that less than 1% of employees will be affected. The Europe, Middle East, and Africa (EMEA) division and its subsidiary Converse are reportedly not expected to be impacted.

Elliott Hill, CEO of Nike, and Sarah Mensah, President of Jordan Brand, attended the Jordan Brand 40th anniversary event last February. Photo by AP Yonhap News

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In a statement sent to CNBC, Nike explained, "As we announced during our fourth-quarter earnings release, the company is currently undergoing a restructuring process." The company added, "These measures are aimed at refocusing on sports and sports culture, deepening our connection with athletes and consumers, and creating space to deliver what only Nike can offer." Previously, in February of last year, Nike announced plans to lay off more than 1,500 employees, accounting for 2% of its total workforce.

Elliott Hill, who has worked at Nike for over 30 years and became CEO last October, has begun efforts to address poor performance and enhance the brand image. Under former CEO John Donahoe, Nike changed its business segmentation from sports categories to men's, women's, and children's divisions, in a bid to expand its lifestyle business. However, some critics argued that this shift led to a weakening of the company's innovation momentum.

CEO Hill is now steering the company back toward a focus on sports and sports culture. During the fourth-quarter earnings release for the fiscal year last June, he stated, "Instead of dividing by men's, women's, and children's categories, the Nike, Jordan, and Converse teams will come to work each day with the mission of creating the most innovative and compelling products for the specific athletes they support."

A woman is entering the Nike flagship store Innovation House NYC on 5th Avenue in New York City, USA. Photo by Reuters Yonhap News

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He also emphasized the formation of teams obsessed with sports, aiming to generate a continuous stream of innovative products across all three brands. CEO Hill expressed optimism, saying, "We expect to see improved business performance starting from here."