Nike plans further job cuts as sales outlook weakens
Nike is planning further job cuts as part of a wider restructuring after warning that sales could fall sharply during its current financial year.
The sportswear giant expects revenue to decline by a high-single-digit percentage in fiscal 2027, as it continues efforts to revive growth under chief executive Elliott Hill amid particularly weak performance in China.
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Nike reported revenue of $11.2 billion for the quarter ending 31 August, down 4% from a year earlier.
Quarterly profit fell 2% to $712 million.North America was the only region to record revenue growth, with sales up 2%. Greater China remained a major challenge, with reported revenue falling 22% to $1.2 billion.
On a constant-currency basis, sales in China were down 26%.
Further changes planned at Nike
Hill, who returned to Nike as chief executive in October 2024, said the company needs to become more agile, efficient and focused on athletes.
The restructuring will result in fewer roles across the company, although Nike has not yet said how many jobs will be affected.
Decisions and notifications concerning affected positions are expected to begin in 2027.
Nike is also reorganising its global operations into three geographic regions: the Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa.
As part of its longer-term plans, the company will establish a new campus in Bengaluru, India, aimed at bringing together new capabilities and talent.
The wider restructuring programme is expected to generate around $2.5 billion in savings through fiscal 2031.
China remains a major challenge
Nike has been trying to strengthen its product offering and rebuild relationships with wholesale retailers as it seeks to improve its performance.
China has proved particularly difficult, with sales in the market declining for nine consecutive quarters.
Hill also identified sportswear and the Jordan brand as areas where further improvement is needed.
The weaker outlook added to investor concerns, with Nike shares falling in after-hours trading following the results.