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

Nike has intensified its restructuring efforts under chief executive Elliott Hill amid worsening performance, particularly in China, where sales have plummeted 26% due to intense competition. The company announced plans to cut more jobs and restructure its global business divisions after predicting a significant revenue decline in its full-year forecast.

Hill acknowledged that boosting weak areas of Nike’s business, such as its performance segment, would take time, citing a need to delay the release of new, appealing products. The restructuring program, including job cuts and a shift to a three-region model (Americas, Asia Pacific, and Greater China, EMEA), is aimed at delivering about $2.5 billion in savings by fiscal 2031.

Nike expects a steep revenue drop of high-single digits in fiscal 2027, with analysts estimating a 2% decline. China, a key profit center, has been struggling, with sales falling for nine straight quarters and the company pulling online sales rights from major Chinese retail partners in January. While North American sales grew 2% in the first quarter, Nike's performance business, driven by the World Cup, helped offset other weak segments.