Nike is preparing another round of job cuts as the sportswear giant launches a major restructuring aimed at lowering costs while it works to reverse declining sales. The company has not said how many workers will lose their jobs.
The changes are part of a new program called Pace, which Nike expects to save about $2.5 billion through fiscal 2031. Nike plans to simplify its global operations, reorganize its business into three geographic regions and open a new campus in India. The company expects about $1 billion in charges connected to the restructuring, primarily from employee-related costs.
The overhaul comes as Nike’s sales continue to fall. Revenue dropped 4% to $11.2 billion during its latest quarter, while Nike Direct sales fell 8% and digital sales dropped 13%. The company now expects revenue to decline by a high-single-digit percentage for its full 2027 fiscal year.
China remains one of Nike’s biggest trouble spots. Revenue in Greater China fell 22% from a year earlier, or 26% when currency changes are removed. Nike is also trying to strengthen its Sportswear and Jordan businesses as consumers face more choices from competing athletic brands.
CEO Elliott Hill, who returned to Nike in 2024 to lead its turnaround, said the company has made progress in its performance-sports business but still has more work to do. The latest restructuring shows Nike is now pairing its effort to create stronger products with a push to become a smaller, less expensive company.
