Nike is laying off employees in its technology division as part of a strategic overhaul aimed at addressing falling sales and internal disruptions. The company plans to outsource some of its tech operations to third-party vendors, although the exact number of layoffs has not been disclosed. This move comes as Nike's CEO Elliott Hill implements changes to the senior leadership team to revitalize the brand and regain consumer interest, particularly as competition intensifies from trendier rivals.

The layoffs follow a forecast of a steeper drop in fourth-quarter revenue than analysts anticipated, indicating ongoing challenges for Nike in maintaining its market position. The company has struggled to innovate in its product offerings, particularly in footwear, which is critical for its brand identity. As Nike shifts its focus to external vendors for tech operations, it raises questions about the long-term implications for its internal capabilities and overall operational efficiency.