Nike plans to cut jobs as part of a sweeping overhaul designed to make the athletic apparel giant “more agile, efficient and athlete-focused,” CEO Elliott Hill said Thursday.
In a memo to employees, Hill said the restructuring “will result in fewer roles across Nike” as the company reorganizes its business, though he did not say how many positions would be eliminated.
“I want to acknowledge that news like this creates uncertainty. I don’t take that lightly,” Hill said. “Throughout this process, we will communicate directly, act with transparency and treat people with respect.”
Hill said decisions about affected roles will begin in 2027.
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In an email to FOX Business, Nike reaffirmed that the workforce reductions “will result in fewer roles across Nike over time.”
“Where consultation with employee representative bodies or other local processes is required, we will follow those requirements and won’t finalize decisions until they’re complete,” Nike added.
The overhaul comes as Nike works to revive growth after weak sales, particularly in its key China market, where revenue fell 26% on a constant-currency basis last quarter, according to Reuters.
“For most teammates, the work immediately in front of you remains the same,” Hill wrote.
He added, “We have shared some financial information, but these numbers are estimates and could materially change. Anything you may see in media reports around impacts is speculative because we do not yet know the number of roles or specific locations of positions.”
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The restructuring is part of a broader initiative called “Pace,” which Nike said is designed to streamline operations and position the company for long-term growth.
Under the plan, Nike will modernize its supply chain, reorganize into three geographic regions, establish a new campus in Bengaluru, India, and reshape its workforce and operating model.
The company will also base its Asia Pacific and Greater China leadership team in Singapore, shifting some roles from its Beaverton, Oregon, headquarters closer to the markets they serve.
The transition is expected to begin in fiscal 2028.
Hill said the changes will allow Nike to invest more heavily in “product innovation, brand storytelling, consumer connection, sport and growth.”
“We must get closer to athletes and consumers, make decisions faster, and focus our investments on the areas that create the most value,” he said.
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Nike said Pace is expected to generate about $2.5 billion in savings through fiscal 2031, with most of those savings expected in fiscal 2029 and 2030, according to Reuters.
Nike said it will share more details about the restructuring at its Investor Day on Nov. 16–17.
In April, the company announced roughly 1,400 people across Nike’s Global Operations team would be laid off. At the time, Chief Operating Officer Venkatesh Alagirisamy said the cuts would primarily affect the company’s technology division and span North America, Asia and Europe, representing just under 2% of Nike’s global workforce.
FOX Business’ Michael Sinkewicz and Reuters contributed to this report.
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