Converse Cuts Jobs Under Nike

The shoes haven't changed much since 1917. The business behind them? That's a different story. On February 9, 2026, Bloomberg reported that Converse — the 118-year-old sneaker brand owned by Nike — is cutting jobs and restructuring its teams, the latest casualty of a parent company desperately trying to find its footing again.

Converse CEO Aaron Cain sent employees a note instructing them to work from home ahead of the announcement — the corporate equivalent of clearing the room before delivering bad news. Cain wrote that the company "also had to make difficult decisions" including "saying goodbye to friends and teammates." Senior executives are expected to be among those leaving. The exact number of cuts has not been disclosed.

Converse, founded in 1908 in Malden, Massachusetts, employs roughly 4,400 people worldwide. Its Boston headquarters at 1 Lovejoy Wharf houses more than 600 workers. The Chuck Taylor All-Star — the shoe that once commanded 80% of the American sneaker market — has become something closer to a liability on the corporate balance sheet. And the numbers explain why the knives are out.

How Bad Is Converse's Revenue Freefall?

Bad enough to make Wall Street wonder if the brand is worth keeping. In Nike's second quarter of fiscal 2026 (ended November 30, 2025), Converse revenue fell 30% to just $300 million, with declines across every territory. That's the brand's worst performance in roughly 15 years.

The bleeding didn't start yesterday. Converse annual revenue dropped 19% to $1.7 billion in fiscal 2025, down from $2.1 billion the year before (which itself was a 14% decline). Rewind to fiscal 2023 and Converse was pulling in $2.4 billion. That's a $700 million revenue evaporation in just two years.

The margin picture is even grimmer. Converse's gross margin deteriorated 700 basis points in Q2, and its EBIT dipped into negative territory — meaning the brand actually lost money on an operating basis. For a brand that Nike bought for $305 million in 2003 and once grew into a $2.4 billion business, that's a remarkable collapse.

Cain, a 21-year Nike veteran who took over as Converse CEO in July 2025, inherited a brand in freefall. His predecessor, Jared Carver, exited after overseeing consecutive quarters of double-digit declines. Cain previously ran Nike's Global Men's division and held senior roles across China and Europe — experience that suggests Nike views the Converse turnaround as a global problem, not just a domestic one.

What Does This Mean for Nike's Turnaround Plan?

Converse's cuts are one thread in a much larger unraveling. Nike CEO Elliott Hill, who took the top job in October 2024 after replacing John Donahoe, inherited a company that had spent years chasing a direct-to-consumer strategy that alienated wholesale partners, ceded shelf space to competitors like Hoka and On, and left the brand feeling stale. Under Donahoe, Nike eliminated more than 50% of its retail partners by September 2021, including Zappos, Dillard's, and Urban Outfitters — a purge that competitors happily exploited.

Hill's "Win Now" turnaround is a five-pillar approach targeting culture, product, marketing, marketplace, and in-person experiences. The early signs are mixed. Nike's Q2 fiscal 2026 revenue grew 1% year-over-year to $12.4 billion. North America rose 9% and wholesale revenue jumped 24% in the region — real proof that rebuilding retailer relationships is working.

But gross margins contracted 300 basis points to 40.6%, operating income fell 32% to $792 million, and digital revenue dropped 14%. Greater China remains a drag, with sales falling 17%. And then there's the tariff problem: Nike now expects $1.5 billion in annualized tariff costs this fiscal year, prompting the company to raise prices across core categories — footwear up 17%, apparel up 14%.

Converse, in this context, is a distraction. At just 2.5% of Nike's total revenue, it demands outsized management attention for minimal payoff. Hill told analysts it "will take more time to return to healthy growth" at Converse, but he's pouring $5 billion into Nike marketing for 2026 — and Converse barely registers in that equation.

Nike's stock tells its own story. Shares trade around $64, down from a 52-week high of $82.44. The company's market cap sits at roughly $94 billion — substantial, but a far cry from the $260 billion peak it touched in late 2021. Investors are waiting for Hill's turnaround to show up in the numbers, not just in press releases about restructured org charts.

Is Nike Going to Sell Converse?

The question is no longer taboo. In January 2026, BNP Paribas analyst Laurent Vasilescu issued a client note suggesting the "underlying health" of Converse is "more precarious" than investors realize. He pointed to EBIT turning negative and gross margins falling 700 basis points — numbers that make a sale look less like abandonment and more like triage.

Nike has a history of cutting loose underperforming brands. The company previously divested Cole Haan, Umbro, Starter, Bauer, and Hurley. Converse would be the biggest departure yet, but the math is compelling: selling the brand would create a roughly 3% headwind to next year's sales, a manageable hit for a company generating $12.4 billion per quarter.

Industry experts are split on the decision. Some argue Converse's Chuck Taylor heritage — the shoe once held 80% U.S. sneaker market share — makes it worth rehabilitating. Others say the brand lost its cultural relevance years ago and Nike's resources are better spent on the flagship swoosh. Nike itself declined to comment on divestiture speculation. But silence, in corporate speak, is rarely reassuring.

How Many Jobs Has Nike Cut in Three Years?

The Converse cuts add to a growing tally. Nike's workforce reductions have become an annual ritual:

• February 2024: Nike announced ~1,600 corporate layoffs (2% of total workforce), with roughly 740 cuts hitting the Oregon headquarters between April and June
• August 2025: Another round trimmed ~1% of corporate staff under Hill's team-structure realignment
• January 2026: 775 distribution center workers in Tennessee and Mississippi, effective April 3, 2026, as Nike accelerates warehouse automation
• February 2026: Converse job cuts announced (number undisclosed), including senior executives

Nike's total headcount has been shrinking steadily — from 83,700 in 2023 to 79,400 in 2024 to 77,800 in 2025. That's roughly 6,000 fewer employees in two years, and the 2026 cuts will push that number higher. The distribution center layoffs alone — justified by Nike's push to "reduce complexity and improve flexibility" — represent about 1% of the remaining workforce.

Is the Entire Sneaker Industry Shrinking Its Workforce?

Nike isn't cutting in a vacuum. The footwear and fashion retail sector has been hemorrhaging jobs in early 2026:

• Catalyst Brands (JCPenney, Brooks Brothers, Nautica) cut ~250 corporate employees — roughly 5% of staff
• Designer Brands (DSW parent) conducted layoffs across operations
• Carter's closed ~150 stores and reduced office staff by 15%
• Kohl's cut ~10% of corporate workforce

An estimated 18,500+ fashion and retail jobs were in jeopardy in January alone. The common thread? Companies are caught between shifting consumer behavior (online vs. in-store), rising costs from tariffs, and the relentless pressure to show Wall Street improving margins. Automation is eating distribution jobs. E-commerce consolidation is eating corporate jobs. And legacy brands like Converse are caught in the middle — too famous to kill, too expensive to fix, too small to prioritize.

The global sneaker market itself is still growing — projected to hit $95.6 billion in 2025 and $157 billion by 2033. But that growth is being captured by nimbler competitors like Hoka, On Running, and New Balance, while legacy players restructure their way through the slowdown.

People Also Asked

Q: How many employees does Converse have?

A: Converse employs approximately 4,400 people globally, headquartered at 1 Lovejoy Wharf in Boston, Massachusetts. The Boston headquarters accommodates 600-plus employees. The exact number of positions being eliminated in the February 2026 restructuring has not been disclosed, though senior executives are among those expected to depart.

Q: When did Nike buy Converse and how much did they pay?

A: Nike acquired Converse in July 2003 for just over $305 million. At the time, Converse had revenue of roughly $205 million — the brand had filed for bankruptcy in January 2001. Nike grew Converse to a peak of $2.4 billion in fiscal 2023 before the current decline. Even at its reduced $1.7 billion annual run rate, Nike's return on the original investment has been extraordinary.

Q: Who is the CEO of Converse in 2026?

A: Aaron Cain became Converse CEO in July 2025, replacing Jared Carver. Cain is a 21-year Nike veteran who previously served as VP and GM of Nike Global Men's. His career at Nike began in 2004 as director of strategy, and he held leadership roles across North America, Europe, and Greater China before taking the Converse reins during one of the brand's most challenging periods.

Looking for your next opportunity? Metaintro surfaces verified roles you won't find on traditional job boards.