Converse initiates restructuring and layoffs amid slumping sales

Employees at Converse have been instructed to work from home as the Nike Inc. brand begins a restructuring process that includes job cuts. According to a Bloomberg report, the reorganization will involve the creation of new roles and team reassignments for remaining staff.

In a memo viewed by Bloomberg News, Converse chief executive officer Aaron Cain stated that the brand "had to make difficult decisions" which would include "saying goodbye to friends and teammates". While the document confirmed layoffs are forthcoming, it did not specify the total number of positions to be eliminated.

Leadership exits and performance decline

The restructuring follows the departure of multiple senior executives, as noted in a separate memo previously reviewed by Bloomberg. These changes come as Converse faces significant financial pressure under Nike chief executive officer Elliott Hill, who assumed his role in 2024 to lead a company-wide turnaround.

The brand’s recent performance highlights several critical challenges including a 30 percent plunge in revenue during the latest quarter, brand sales currently trending toward a 15-year low, and failed attempts to diversify into new styles. Alongside slumping sales in China, Converse has become one of the most significant underperforming segments within the Nike portfolio.

Nike corporate reset

During a call with analysts in December, Hill noted that the company is "resetting the marketplace for Converse under new leadership". Despite efforts to stabilize Nike’s North American and running divisions, the company's shares have dropped 7 percent over the 12 months ending Friday, falling an additional 2.2 percent on Monday following the news.

The Converse layoffs follow earlier cost-cutting measures at the parent company, which included the termination of hundreds of distribution center workers earlier this year and a reduction of approximately 1 percent of corporate staff during a 2025 restructuring. Converse has scheduled an all-team meeting for later this month to discuss the transition.