Nike is planning further job cuts as the sportswear giant intensifies its restructuring efforts under CEO Elliott Hill, seeking to make the company more agile, efficient and focused on athletes. The company has not yet disclosed how many employees will be affected, with decisions on impacted roles set to begin in 2027.
The restructuring is part of a broader strategy to accelerate Nike's turnaround as the company grapples with weak demand, excess inventory and challenges across key markets, according to an earnings statement.
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Nike has warned that its full-year fiscal 2027 revenue is expected to decline by a high-single-digit percentage, signalling continued pressure on sales. In the first quarter of fiscal 2027, which ended on August 31, revenue fell 4% to $11.2 billion, while quarterly profit declined 2% to $712 million.
Greater China remains one of Nike's weakest markets. Revenue in the region fell 22% to $1.2 billion, while North America was the only region where revenue grew, increasing 2%, according to the report.
Hill also highlighted the need to improve the performance of Nike's Sportswear and Jordan brands as the company works to regain momentum.
Nike's latest restructuring follows challenges including excess inventory and a shift towards direct sales that left the company underrepresented with some key retail partners. Hill, who returned as CEO in October 2024, said Nike had made progress since his return but that a comprehensive review showed deeper changes were needed.
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Nike said the changes would result in fewer roles across the company, with decisions on affected positions beginning in calendar 2027 and beyond. Hill said the company needed to become more agile, efficient and athlete-focused.
Alongside the restructuring, Nike is planning a new corporate campus in Bengaluru, India. Hill described the project as a long-term investment in capabilities and talent to strengthen the company's ability to serve athletes globally, including in India.
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