Nike is preparing to cut more jobs and restructure its global operations as the sportswear giant faces continued pressure on sales and forecasts a high-single-digit revenue decline for its current fiscal year.
The company announced the additional restructuring measures as it reported results for the first quarter of fiscal 2027, with management saying the changes are intended to make the business more focused and help accelerate its turnaround strategy.
Nike has not yet disclosed how many additional employees will be affected. The company employed about 73,000 people as of the end of its most recent fiscal year, while more than 2,000 positions had already been eliminated earlier in 2026 as part of previous cost-cutting efforts.
The latest restructuring is part of a broader initiative known as Pace, which Nike says is designed to generate about $2.5 billion in savings through fiscal 2031. The company also plans to reorganise its geographic operations into three major regions: the Americas, Asia Pacific and Greater China, and Europe, Middle East and Africa.
The restructuring comes as Nike continues to deal with weaker demand for some of its major product lines and intense competition in key markets. Chief executive Elliott Hill said the company still has work to do in Nike Sportswear, the Jordan Brand and Greater China.
Nike’s first-quarter revenue fell 4 per cent year on year to about US$11.2 billion, while net income declined 2 per cent to US$712 million. The company said improved gross margins and tighter cost management helped support the quarter’s financial performance.
Greater China remained one of the biggest challenges. Sales in the region fell sharply, with Reuters reporting a 26 per cent decline in the first quarter. The market has struggled for several quarters as Nike faces stronger competition from local brands and attempts to adjust its product and digital strategies.
Nike is also changing how it operates in China. Beginning in January, the company plans to take back online sales rights from major Chinese retailers as part of an effort to gain greater control over its digital business and customer experience. Hill acknowledged that the changes could weigh on results in the short term.
The company is also trying to rebuild momentum around performance sports, where management says it has seen stronger progress. Nike plans to focus more heavily on priority sports categories while reducing some of its dependence on lifestyle products and heavily promoted sneaker releases.
Jordan Brand has also been under pressure, with sales declining significantly. Nike has indicated that it plans to adjust the pace and strategy of Jordan product launches while seeking to restore demand and strengthen the brand’s positioning.
For fiscal 2027, Nike now expects revenue to fall by a high-single-digit percentage. That outlook is weaker than analysts had anticipated and signals that the company expects its recovery to take longer than previously hoped.
Nike is simultaneously working to reduce expenses. The Pace programme is expected to involve about US$1 billion in pretax restructuring charges, including costs related to severance, while the company expects the longer-term savings to reach about US$2.5 billion by fiscal 2031.
The company is also establishing a new campus in Bengaluru, India, as it reorganises parts of its global operations. India has become an increasingly important location for Nike’s business and supply-chain activities.
Despite the weaker outlook, Nike said it remains focused on rebuilding the business through product innovation, stronger relationships with wholesale partners and greater emphasis on sports performance. The company is expected to provide more detailed financial targets and information about its strategy at an investor event in November.
The latest measures show that Nike’s turnaround under Hill is entering another major restructuring phase, with the company attempting to lower costs and reshape its operations while simultaneously trying to restore sales growth in some of its most important markets.
