Amid Sale Speculation, Converse Layoffs, Restructuring Appears Imminent

Core Insights - Nike Inc. is undergoing significant restructuring, with nearly 800 jobs cut and additional layoffs at Converse as part of strategic changes to boost sales growth [1][2] - Converse has faced severe revenue declines, with a 28% drop in Q1 and a further 31% decrease in Q2, leading to negative EBIT for the second quarter [3][5] - Analyst Laurent Vasilescu suggests that Converse's brand health is deteriorating, indicating a potential divestiture by Nike, which would mark a continuation of its history of selling off acquired brands [4] Company Developments - Converse employees have been instructed to work from home as the company implements strategic changes [1] - Aaron Cain, a long-time Nike veteran, has taken over as CEO of Converse, succeeding Jared Carver, as part of the leadership reset [4] - Nike anticipates ongoing challenges for Converse, with Q2 revenues reported at $300 million, reflecting a 30% decline across all territories [5]