Nike plans job cuts as it forecasts lower sales
The sports giant suffered an especially big drop in Greater China, one of its worst-performing markets.
Nike announced plans to cut jobs and establish a new campus in India as the company seeks to turn around its business following a decline in quarterly profits. The sports apparel giant reported a 2% drop in profits to US$712 million, with revenues falling 4% to US$11.2 billion for the quarter ending August 31, 2027. Sales are expected to decline by high-single digits for the fiscal year.
CEO Elliot Hill stated the company is "building Nike for the long-term" and emphasized the need for improvement in sportswear and the Jordan brand. The company cited issues such as overproduction and an ill-conceived shift to direct sales that left it underrepresented with key retailers. Hill acknowledged the changes would result in job cuts across Nike, with decisions to be made in calendar year 2027 and beyond.
Nike also plans to invest in a new campus in Bengaluru, India, to strengthen its presence in the region. Analysts noted Nike's brand heat is fading and its forecast for further revenue decline is troubling.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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