Sneaker brand Converse is the latest subsidiary of parent company Nike to feel the heat from the sneaker giant’s $2 billion cost-saving plan that includes laying off 2% of its workforce, Bloomberg reported Tuesday after viewing an internal memo.

Footwear brand Converse will cut jobs as part of parent company Nike's on-going $2 billion cost savings plan, a source familiar with the matter said on Tuesday.

The job cuts are part of Nike’s previously announced layoffs amid a general plan to “streamline” the organization and save up to $2 billion in costs over the next three years, the company said in December. At the time, Nike alluded to layoffs and said it could soon face employee severance costs as it rolled out the strategic plan.

Converse, a well-known footwear brand, is set to reduce its workforce. This decision comes as part of Nikes comprehensive $2 billion cost-saving strategy, aiming to streamline operations over the next

Nike is undergoing a $2 billion cost-cutting plan that includes slashing 2% of its workforce. Layoffs have hit its Oregon headquarters across two rounds, with the process expected to conclude by the end of its fiscal year, according to an internal memo reviewed by Bloomberg News.

While Converse operates semi-autonomously within the Nike ecosystem, it is not immune to the challenges facing its parent company. Nike’s cost-saving measures, including layoffs and supply chain optimization,