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● LIVE Updated 53m ago · 14 sources tracked

Nike plans job cuts under sweeping restructuring plan

Nike is implementing a sweeping restructuring plan that includes job cuts and a $2.5 billion cost-cutting drive to revive financial growth. CEO Elliott Hill stated the overhaul aims to make the company more agile, efficient, and athlete-focused. The move follows a steep revenue drop and a high-single-digit revenue decline forecast for the year. The company is reorganizing its global operations into three geographies: the Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa, while focusing on supply chain modernization.

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  • ✓ CEO Elliott Hill is leading a restructuring plan to reorganize global operations and revive growth.
  • ✓ Nike is implementing a cost-cutting drive to deliver $2.5 billion in savings.
  • ✓ The company forecasts a high-single-digit revenue decline this year.
  • ✓ Nike is reorganizing into three geographic regions: the Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa.
🛡️ Source Corroboration: 14 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Nike detailed a $2.5 billion overhaul and specific geographic reorganization as part of its job-cutting initiative.

Live updates

  1. Nike Announces Job Cuts and $2.5 Billion Overhaul Amid Sales Slump

    Nike is implementing a sweeping restructuring plan that includes job cuts and a $2.5 billion cost-cutting drive to revive financial growth. CEO Elliott Hill stated the overhaul aims to make the company more agile, efficient, and athlete-focused. The move follows a steep revenue drop and a high-single-digit revenue decline forecast for the year. The company is reorganizing its global operations into three geographies: the Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa, while focusing on supply chain modernization.

    Why it matters

    The company is struggling with a downturn exacerbated by weakening sales in China and problem areas within the Jordan brand and sportswear lines. These challenges have pushed Nike shares to their lowest level since 2013. This restructuring represents a critical effort by new leadership to stabilize the business model.

    What is confirmed

    • CEO Elliott Hill is leading a restructuring plan to reorganize global operations and revive growth.
    • Nike is implementing a cost-cutting drive to deliver $2.5 billion in savings.
    • The company forecasts a high-single-digit revenue decline this year.
    • Nike is reorganizing into three geographic regions: the Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa.
    • Sales have steadily declined in China.
    • The restructuring will result in fewer roles across the company.

    Still unconfirmed

    • Layoffs are set to begin next year.
    • Nike is building a new campus in India.

    What to watch next

    • The company's earnings report scheduled for after the bell.
    • Specific numbers regarding the total headcount reduction.
    • Quarterly sales data showing the impact of the China slump.
    Sources used for this update (15)
    1. CNBC — Nike is set to report earnings after the bell. Here's what to expect
    2. About Nike — NIKE, Inc. Announces Changes to Its Operating Model —
    3. Fox Business — Nike plans job cuts under sweeping restructuring plan
    4. Yahoo Finance — Nike plans job cuts as it forecasts lower sales
    5. Reuters — Nike plans more job cuts to boost sputtering turnaround, forecasts steep revenue drop
    6. www.zerohedge.com — Futures Rise, Yields and Oil Drop Ahead Of Key Jobs Report | ZeroHedge
    7. www.foxbusiness.com — Nike plans job cuts under sweeping restructuring plan - Fox Business
    8. www.dailymail.com — Nike faces more job cuts as sales slump deepens and China woes mount - with layoffs set to begin next yea....
    9. www.fox6now.com — Nike cutting more jobs as turnaround struggles continue | FOX6 Milwaukee
    10. www.foxbusiness.com — FOX BUSINESS
    11. finance.yahoo.com — Nike plans job cuts as sales fall and outlook weakens
    12. www.latimes.com — Nike plans job cuts and $2.5-billion overhaul as sales slump
    confidence 95%
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