Converse, a struggling brand under Nike (NKE.US), has officially informed employees of work-from-home arrangements and is preparing to implement layoffs and restructuring. According to an internal notice from Converse CEO Aaron Kane, the organizational changes will involve reassigning some staff to new roles and restructuring teams. Kane acknowledged in the notice that Converse "must make difficult decisions," including "parting ways with colleagues." The memo did not specify the number of positions to be cut, and Nike declined to comment. In a previous memo, Kane announced the departure of several senior executives. Converse has also notified all employees that a company-wide meeting will be held later this month to discuss further arrangements. Under the leadership of Nike CEO Elliott Hill, who took office in 2024 with a mandate to turn around the sportswear company, Converse continues to face operational challenges. The brand remains heavily reliant on its iconic Chuck Taylor All Star canvas sneakers and has struggled to gain traction with other product lines. Recent financial reports show a 30% year-over-year decline in revenue for the latest fiscal quarter. Converse's sales are approaching their lowest level in 15 years, making it one of Nike's most significant strategic concerns. Although Elliott Hill has successfully revitalized Nike's North America and running divisions, these efforts have failed to boost investor confidence. Over the past 12 months, Nike's stock has fallen by 7% as of last Friday, and on Monday, it dropped another 2.36%, continuing its recent weak performance. In December, Hill told analysts, "Under new leadership, we are systematically reshaping Converse's competitive position in the market." Earlier this year, Nike laid off hundreds of employees at distribution centers as part of organizational optimization. Last year, the company also cut less than 1% of its headquarters staff through a restructuring initiative.