Nike Blames Remote Work for Stifling Innovation, Announces Layoffs Despite Some Growth

Nike's CEO says remote work hurt the company's ability to innovate disruptive new products. After returning to the office, Nike is now "ruthlessly focused" on rebuilding its innovation pipeline.

Revenue has grown 9% over the last 4 years due to iterative innovation, but bold and disruptive innovation was missing during the pandemic when employees worked remotely.

In December, Nike announced plans to cut costs by $2 billion over 3 years due to weaker consumer demand. In February, the company laid off over 1,500 people.

The CEO strongly endorses returning to the office, the latest in the debate over remote work vs in-person collaboration. More U.S. workers now prefer a hybrid model.

Nike faces emerging rivals, but says its history of innovation in areas like running will allow it to continue leading, rather than copying competitors.