Nike Plans Job Cuts Under Sweeping Restructuring Plan
The plan will save $2.5 billion over four years and includes an unspecified number of job cuts as Nike reworks its sales structure.
- On Thursday, Nike announced a restructuring plan called "Pace" designed to make the company "more agile, efficient and athlete-focused" through consolidating four sales geographies into three regions and pending job cuts.
- CEO Elliott Hill launched this initiative after Nike reported $11.2 billion in quarterly sales, below the $11.3 billion expected by analysts, while the company's stock has fallen 45% this year amid turnaround delays.
- The company expects the restructuring to cost $1 billion and save $2.5 billion over four years, while establishing a new campus in Bengaluru, India, and relocating Asia Pacific and Greater China leadership to Singapore.
- CEO Hill acknowledged the layoffs will create uncertainty, stating "I don't take that lightly," while Nike affirmed the restructuring "will result in fewer roles across Nike over time" without specifying exact numbers.
- Decisions regarding affected roles will begin in 2027, as Nike plans to share more details at its Investor Day on Nov. 16–17 while addressing persistent problems in its Jordan, sportswear, and China businesses.
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Reformatorisch Dagblad
welingelichtekringen.nlSporting goods brand Nike is cutting jobs again. That decision follows disappointing sales figures and a disappointing forecast for 2027. Nike is merging sales divisions, which, according to a memo to employees seen by news agency Bloomberg, will mean fewer positions will be needed in the long term.
Nike launches a profound restructuring against the decrease of the sales: approved a global plan of 2,5 billion dollars with new cuts to the staff
The U.S. Group announced on Thursday a "new business model" which is expected to lead to job losses, in order to generate approximately $2.5 billion in savings by fiscal year 2031.
At first, Nike did not quantify the extent of job cancellations. It was said that the employees concerned would be informed next year.
The world's largest sporting goods manufacturer is struggling with declining sales and problems in important markets such as China. Corporate CEO Elliott Hill wants to counter with a new austerity program.
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