Nike Posts Mixed Quarter and Reveals Layoffs in Pace Overhaul

Nike will eliminate jobs as part of an operating-model overhaul called Pace, a move the company tied to weaker sales in China and a push to become, in CEO Elliott Hill’s words, more agile, efficient and athlete-focused. The athletic apparel maker disclosed the plan on Thursday while reporting a mixed fiscal first quarter, according to Foxbusiness.

Nike has not said how many positions it will cut. In a memo to employees, Hill told staff that the work will produce fewer roles across the company and that decisions about affected roles will start in 2027. He said the news creates uncertainty and that he does not take that lightly, pledging direct communication and transparency through the process. Cnbc reported the same timing, noting layoffs will begin next year without further detail.

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Key facts

• Nike reported net income of $712 million, down 2% from $727 million a year earlier, on revenue of $11.21 billion, a 4% decline.
• Revenue in China fell 26%, while North America revenue came in at $5.13 billion, just above the $5.11 billion estimate.
• Pace is expected to deliver about $2.5 billion in savings through fiscal 2031, with most arriving in fiscal 2029 and 2030.
• The plan carries a 15-cent restructuring expense against fiscal 2027 earnings per share, a detail reported by Cnbc.
• Nike expects revenue to decline by a high-single-digit percentage in fiscal 2027 and will share more details at its Investor Day on Nov. 16–17.

What the overhaul changes

Beyond workforce reductions, Pace redraws how Nike runs its business. The company plans to modernize its supply chain, reorganize into three geographic regions, and reshape its operating model. It will open a new campus in Bengaluru, India, and base its Asia Pacific and Greater China leadership team in Singapore, moving some roles out of its Beaverton, Oregon headquarters closer to the markets they serve. That transition is expected to begin in fiscal 2028.

Nike said in an email to Foxbusiness that reductions will produce fewer roles over time, and that where consultation with employee representative bodies or other local processes is required, the company will follow those requirements and will not finalize decisions until they are complete. Hill told staff that for most teammates the work immediately in front of them remains the same, and cautioned that shared financial figures are estimates that could materially change.

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This restructuring follows earlier cuts. In April, Nike announced roughly 1,400 layoffs across its Global Operations team, a move then-COO Venkatesh Alagirisamy said would mainly hit the technology division across North America, Asia and Europe, representing just under 2% of Nike’s global workforce.

Why it matters

The results underscore how much of Nike’s turnaround still depends on China, where a 26% revenue drop on a constant-currency basis weighed on the Nike brand, while North America held roughly steady. Pace is the company’s attempt to cut cost and decision layers so it can spend more on product innovation, brand storytelling, consumer connection and sport — areas Hill said must absorb investment. Nike has not quantified the layoffs, so employees in Beaverton and in regional offices face a restructuring whose size and distribution remain undefined even as the savings target is public.

What to watch

Nike said it will release more detail at its Investor Day on Nov. 16–17. The scale of the headcount reduction, and where the affected roles sit, will also become clearer once consultations with employee representative bodies are complete.

This is not financial advice. Markets are volatile and uncertain, and nothing here should be read as a prediction of Nike’s share price or results.

Written by

Benjamin

Benjamin Carter covers business, finance, and the stock market for StockPil, focusing on the trends and data that matter to everyday investors.

Sources: Fox Business, Cnbc