Classic canvas shoes are not selling well? Converse sales approach their lowest point in 15 years, NIKE, Inc. Class B (NKE.US) initiates layoffs and restructuring.

As a struggling brand under NIKE, Inc. Class B (NKE.US), Converse has officially notified its employees to work from home and is about to launch a layoff and restructuring plan. According to an internal memo released by Converse CEO Aaron Cain, this structural adjustment will involve the allocation of new roles for some employees and the restructuring of team structures. Cain admitted in the memo that Converse "had to make difficult choices," including "saying goodbye to comrades." The memo did not specify the number of positions to be cut, and NIKE, Inc. Class B declined to comment on the matter. It was also revealed that in another memo released earlier, Converse CEO Aaron Cain announced the departure of several executives. Meanwhile, Converse informed all employees that a company-wide meeting will be held later this month to explain the future arrangements. Under the leadership of NIKE, Inc. Class B CEO Elliott Hill, Converse is facing operational difficulties. Hill officially took office in 2024 with the core mission of helping the sportswear company turn things around. However, the reality is not optimistic - Converse still heavily relies on its iconic product, the Chuck Taylor classic canvas sneakers, and has struggled to establish itself in other product lines. According to the latest financial report, the brand's revenue plummeted by 30% in the recent fiscal quarter. Converse's sales are approaching the lowest level in 15 years, making it one of the current largest strategic pain points for NIKE, Inc. Class B. Although Elliott Hill successfully reshaped the North American and running business sectors of NIKE, Inc. Class B, these reform measures have not effectively boosted investor confidence. Data shows that in the past 12 months up to last Friday, NIKE, Inc. Class B's stock price has fallen by 7%; and this Monday, its stock price fell by 2.36% again, continuing its recent weak performance. Hill emphasized in December during discussions with analysts: "Under the leadership of the new team, we are systematically reshaping Converse's market competitiveness." On the organizational optimization front, earlier this year, NIKE, Inc. Class B implemented a layoff plan involving hundreds of employees at distribution centers; and looking back to last year, the company underwent an architectural restructuring that affected less than 1% of headquarters staff.