In a move to streamline operations and boost growth, Nike is implementing another round of layoffs. This decision comes as part of CEO Elliott Hill‘s broader strategy to realign the company.

The job cuts are expected to affect less than 1% of the company’s corporate workforce. the exact number of positions being eliminated remains undisclosed. The company has stated that its EMEA and Converse divisions will not be affected by these layoffs.

In a statement released the company said, “As we shared in Q4 earnings, NIKE, Inc. is in the midst of a realignment. The moves we’re making are about setting ourselves up to win and create the next great chapter for NIKE. This new formation is built to put sport and sport culture back at the center, to connect more deeply with the athlete and the consumer, and to give us the space to create what only NIKE can.”

This announcement follows a previous layoff in February, where Nike cut 2% of its workforce, impacting over 1,500 jobs, as part of a larger restructuring effort. The current round of layoffs is directly linked to hill’s plan to restructure teams within the association.

Under the leadership of former CEO John Donahoe, the company shifted its business segmentation from sport-specific categories to focus on women’s, men’s, and kid’s divisions, aiming to expand its lifestyle business.

Some critics have suggested that this shift contributed to a slowdown in Nike’s innovation, as the company prioritized lifestyle products for a broader consumer base rather than focusing on athletes.

Now, Hill is reversing that strategy to refocus the business on sports and culture. Following Hill’s vision shared in June, leaders were appointed in July to lead the new teams. The company noted that a “small number” of employees will be leaving due to these changes.

According to an internal memo, some employees will transition to new roles or levels, report to new managers, or join different teams as part of the restructuring.

Employees will be informed of their status by Sept. 8, with the majority of new roles taking effect on Sept. 21.

“To make space for these conversations, corporate employees based in an office location in the U.S. and Canada will work remotely next week, unless otherwise informed by your leader,” the memo stated.

Since assuming leadership, Hill has been working to reverse declining sales, revitalize innovation, and regain wholesale partnerships.

During the fiscal fourth-quarter earnings announcement in June, nike projected that sales and profit declines would ease in the coming quarters, suggesting that the worst might potentially be over and that the benefits of the turnaround could materialize sooner than anticipated. Hill alluded to the ongoing realignment during a call with analysts.

“Instead of a men’s, women’s and kids construct, Nike, Jordan, and Converse teams will now come to work every day with a mission to create the most innovative and coveted product, footwear, apparel and accessories for the specific athletes they serve,” said Hill.

Hill added that the company would organize into “sport-obsessed teams” to “drive a relentless flow of innovative product across all three of the brands.”

“The moves we’re making are about setting ourselves up to win and create the next great chapter for NIKE.”