Nike is preparing to reduce its workforce as part of a major restructuring plan aimed at making the company more efficient, improving operations and supporting long-term growth.
CEO Elliott Hill announced the changes in a memo to employees on Thursday, explaining that the overhaul would result in fewer positions across the company. However, Nike has not yet disclosed how many employees will be affected or which locations will experience job cuts.
Hill said decisions about affected positions are expected to begin in 2027. He also acknowledged the uncertainty surrounding the announcement and promised to communicate with employees throughout the process.
Nike Job Cuts Expected to Begin in 2027
In his message to employees, Hill explained that the company needs to become more agile, efficient and focused on athletes and consumers.
He acknowledged that news of workforce reductions could create uncertainty among employees but said Nike would handle the process with transparency and respect.
Nike also confirmed that some workforce changes may require consultations with employee representatives and compliance with local employment procedures. The company said it would not finalize decisions until those requirements were completed.
Hill added that most employees would continue working on their existing responsibilities while the restructuring process moves forward.
Nike Introduces ‘Pace’ Restructuring Strategy
The planned job cuts are part of a broader initiative called Pace, which is designed to simplify Nike’s operations and create a more efficient business structure.
Under the strategy, Nike plans to modernize its supply chain, reorganize its operations into three geographic regions and establish a new campus in Bengaluru, India.
The company will also relocate its Asia Pacific and Greater China leadership team to Singapore, moving some responsibilities closer to the markets they serve.
The transition is expected to begin in fiscal 2028.
According to Hill, these changes will allow Nike to focus more resources on product innovation, brand development, consumer relationships and growth.
Weak Sales Add Pressure on Nike
The restructuring comes as Nike works to improve its financial performance following a period of weaker sales.
The company’s performance in China has been a particular concern. Revenue in the market declined 26% on a constant-currency basis during the most recent reported quarter, according to Reuters.
The company is looking to strengthen its position by improving operations, responding more quickly to consumer demand and focusing investments on areas with greater growth potential.
Nike has also announced workforce reductions in previous restructuring efforts. In April, the company revealed plans to eliminate approximately 1,400 positions across its Global Operations team, primarily affecting technology-related roles.
Nike Expects $2.5 Billion in Savings
Nike expects its Pace restructuring strategy to generate approximately $2.5 billion in savings through fiscal 2031.
Most of the anticipated savings are expected to occur during fiscal 2029 and 2030, according to Reuters.
The company plans to provide additional information about its restructuring strategy during its Investor Day on November 16–17.
While the exact number of jobs affected remains unknown, the announcement signals a significant shift in Nike’s operating structure as it works to improve efficiency and support its future business growth.
