Nike announces new round of job cuts after weak sales
The sports brand expects to save billions, but has not yet given a figure for the new redundancies.
Nike has announced a new reorganisation after revenue fell by 4 per cent in the first quarter of its financial year. The company expects the programme to save billions of dollars and to cut jobs again.
Nike reported quarterly revenue of $11.2 billion for the period ending on 31 August. That was 4 per cent less than a year earlier. According to Reuters, analysts had expected about $11.32 billion. Net profit fell by 2 per cent to approximately $700 million.
The new reorganisation is called Pace and, according to Nike, is intended to simplify the organisation, modernise the global supply chain and reorganise the company into three geographical regions. A new campus will also be established in India. Nike says the programme should deliver approximately $2.5 billion in savings through to financial year 2031.
These savings are expected to be offset by approximately $1 billion in one-off costs. According to the company, those costs will mainly consist of employee-related expenses, including redundancy payments. Nike expects approximately $300 million of that amount to be recognised in financial year 2027. The number of jobs that will be lost in the new round and the countries affected have not yet been disclosed.
The company already announced in April that it would cut approximately 1,400 positions within its Global Operations division. According to Nike, the measure mainly affected technology jobs. The new reorganisation builds on an earlier cost-cutting programme, the company says, making it impossible to determine from this announcement alone how many additional positions will be eliminated in this round.
Revenue trends varied by division. Revenue from the Nike brand fell by 4 per cent, while direct digital sales declined by 13 per cent. Converse recorded $263 million, 28 per cent less than a year earlier. North America was the only major region to post growth; China and Europe remained weak.
Nike expects revenue in the full 2027 financial year to fall by a high single-digit percentage. According to Reuters, investors responded with a fall in the share price in after-hours trading. The reorganisation is therefore not only a labour-market issue, but also a new test for the strategy of chief executive Elliott Hill, who wants to strengthen the brand again through sports products and less reliance on discounts.
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The key facts were directly confirmed by Nike and independently checked against Reuters. The number of new redundancies has deliberately been left unspecified because Nike has not provided it.
- confirmed Nike reported $11.2 billion in revenue for the quarter ending on 31 August 2026. — Nike gives this revenue figure in its quarterly report. source
- confirmed Revenue fell by 4 per cent and was below the average analyst expectation. — Nike confirms the decline; Reuters cites an expectation of $11.32 billion. source
- confirmed The Pace programme is intended to save approximately $2.5 billion through to financial year 2031. — This is stated in Nike’s quarterly report and SEC filing. source
- confirmed Nike announced a reduction of approximately 1,400 positions in April. — Nike gives this figure in its announcement about Global Operations. source
Editor's note
The revenue and savings figures come from Nike’s quarterly report. The exact number of new redundancies and the breakdown by country are not yet known.Sources
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