According to a report from Bloomberg that cited a memo from Converse’s CEO Aaron Cain, the company is making “difficult decisions” that will include “saying goodbye to friends and teammates.”
- Converse employees were reportedly asked to work from home during the week as the brand works on making these strategic changes.
- Apart from layoffs, the brand is also looking to add new roles and reshuffle teams for some of its staff members, as per the report.
- In its Q2 2026 earnings report, Converse revenues declined 30% on a reported basis and 31% on a currency-neutral basis.
Nike Inc.’s (NKE) sneaker brand Converse is reportedly cutting employees as it makes strategic changes to its team in a bid to recapture sales growth.
According to a report from Bloomberg that cited a memo from Converse’s CEO Aaron Cain, the company is making “difficult decisions” that will include “saying goodbye to friends and teammates.”
Apart from layoffs, the brand is also looking to add new roles and reshuffle teams for some of its staff members, as per the report.
Converse employees were reportedly asked to work from home during the week as the brand works on making these strategic changes.
As per Bloomberg, Cain also said that many senior executives in the company were also departing. Converse reportedly announced to employees that it would hold an all-team meeting later this month.
Converse’s Underperformance
In its latest earnings release for the second-quarter (Q2) 2026, Nike’s headline numbers improved marginally under CEO Elliott Hill.
Revenues for the quarter were up 1% year-on-year, coming in at $12.4 billion, and beating street expectations of $12.2 billion, as per data from Fiscal.ai. The company’s wholesale revenues were also 8% higher than the previous period, coming in at $7.5 billion.
However, revenues for its Converse brand declined 30% on a reported basis and 31% on a currency-neutral basis, coming in at $300 million. The company said this reflected the declines in sales across all territories.
Job Cuts
Converse’s job cuts come amid wider layoffs at Nike. Earlier in January, a CNBC report said the shoe retailer was cutting 775 employees, mostly impacting distribution center roles in Tennessee and Mississippi, amid rising automation use.
Nike also cut about 1,000 corporate jobs, or just below 1% of its workforce, in 2025 amid restructuring efforts.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NKE shares was in the ‘bearish’ territory over the past day amid ‘normal’ message volumes.
Shares of NKE have lost more than 11% of their value in the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Also Read: Money Laundering Claims On AppLovin Shareholder Retracted By CapitalWatch
