Nike plans more job cuts to boost sputtering turnaround, forecasts steep revenue drop

Nike has announced further job cuts and restructuring as its performance declines, especially in China. The company's full-year revenue forecast has dropped significantly, with analysts predicting a steep decline. CEO Elliott Hill attributes this to a lack of compelling new products, leading to increased promotions and discounts.

Nike is consolidating its global business divisions into three regions: Americas, Asia Pacific, and Greater China, with Greater China being a particular concern due to a 26% sales drop. The restructuring aims to generate savings of around $2.5 billion by 2031, but it's unclear how many jobs will be affected. Nike's performance business did see growth, likely due to the World Cup.

However, the company is struggling to innovate locally in China, where sales have fallen for nine consecutive quarters. Analysts are questioning whether Nike's quick turnaround plan will convince Chinese consumers that its products are worth buying.