Shake-up at the sports giant: dozens of stores closed, 1,400 jobs cut

The sports brand giant Nike, the world's largest manufacturer of apparel and footwear, is accelerating the pace of store closures across the United States — with about 12 branches having their doors closed in the month of July alone. This dramatic move comes as a response to growing competition in the industry from young and flexible brands, which react quickly to changes in consumer tastes and pose a heavy challenge to veteran players.

The current wave of closures is not accidental, but part of a comprehensive global efficiency plan announced by the company in April 2026, aimed at strengthening the business base and restoring competitiveness. As part of the plan, Nike is streamlining the supply chain, accelerating the implementation of new technologies, and tightening ties with manufacturers and retail partners.

However, the process is taking a significant operational and human toll: a reduction of about 1,400 jobs is expected in the global operations arm, the company has closed technology offices in three different locations and consolidated some of its activities, and the company's ambitious fitness studio venture has been cancelled and completely shut down.

"We know we are not reaching our full potential," admitted Nike President and CEO Elliott Hill during an investor call.

Hill pointed to a "more complex macro environment" and a decline in store traffic, which directly affects private consumer spending.

Despite the closure of branches, Nike clarifies that they do not intend to give up physical presence in the field. Hill emphasized that the company will continue to invest in both online channels and the store network simultaneously. As part of this concept, the company plans to renovate and refresh about half of its directly-owned store network by the end of the fiscal year. The goal: to create a uniform, seamless, and more advanced shopping experience between physical and digital sales channels.