Nike is planning to be a smaller company. After two straight quarters of falling revenue, Nike said it expects sales to keep declining this fiscal year and it will shrink its operations, cut jobs and merge regional businesses to adjust.
“This work will result in fewer roles across Nike,” Chief Executive Elliott Hill wrote in a memo to employees. He said decisions on which jobs will be eliminated would begin in calendar 2027. Nike shares fell 3.7% in after-hours trading, putting them on pace for their worst year on record, down 47% so far.
Hill, who started at Nike as a sales intern in 1988 and came out of retirement to become chief executive in October 2024, has spent his tenure trying to win back retailers. But the company has struggled with its China business, failing to capitalize on a sporting boom that has boosted rivals such as On and Hoka. Hill said the company has more work to do in “Greater China,” as well as in its Nike Sportswear lifestyle business and the Jordan brand.
Nike cut nearly 800 warehouse jobs in January and about 1,400 corporate roles in April. The company said its new restructuring program would save about $2.5 billion through fiscal 2031, with roughly $1 billion in pretax charges. Revenue fell 4% in the recent quarter to $11.2 billion, and profit fell to $712 million from $727 million.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing