FOX Business’ Jeff Flock reports on Nike’s recent struggles, including a 50% drop in shares and its removal from the S&P 100, while Ben Connard, CIO of the Carnegie Investment Council, discusses the semiconductor market on “The Claman Countdown.”
Nike plans to cut jobs as part of a sweeping overhaul aimed at making the sportswear giant “more agile, more efficient and more athlete-focused,” CEO Elliott Hill said Thursday.
In a memo to employees, Hill said the restructuring “will result in a reduction in the number of positions within Nike” as the company reorganizes its operations, although he did not specify how many positions would be eliminated.
“I want to recognize that news like this creates uncertainty. I don’t take this lightly,” Hill said. “Throughout this process, we will communicate directly, act with transparency and treat people with respect.”
Hill said decisions about affected roles will begin in 2027.
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Nike plans to cut jobs as part of a sweeping overhaul aimed at making the sportswear giant “more agile, more efficient and more athlete-focused.” (Michael M. Santiago/Getty Images)
In an email to FOX Business, Nike reiterated that the workforce reductions “will result in fewer positions within Nike over time.”
“Where consultation with employee representative bodies or other local processes is required, we will respect these requirements and only finalize decisions once they are complete,” Nike added.
The overhaul comes as Nike struggles to revive growth after weak sales, particularly in its key market of China, where sales fell 26% in constant currencies last quarter, according to Reuters.
“For most teammates, the job immediately before you remains the same,” Hill wrote.
He added: “We have shared some financial information, but these figures are estimates and could change significantly. Anything you may see in media reports regarding impacts is speculative because we don’t yet know the number of roles or the specific location of positions. »
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CEO Elliott Hill said decisions on affected roles will begin in 2027. (Francesca Volpi/Bloomberg via Getty Images)
The restructuring is part of a broader initiative called “Pace,” which Nike says aims to streamline operations and position the company for long-term growth.
Under the plan, Nike will modernize its supply chain, reorganize into three geographic regions, establish a new campus in Bangalore, India, and reshape its workforce and operating model.
The company will also base its Asia Pacific and Greater China leadership team in Singapore, moving some functions from its Beaverton, Oregon, headquarters closer to the markets they serve.
The transition is expected to begin in fiscal 2028.
Hill said the changes will allow Nike to invest more in “product innovation, brand storytelling, consumer connection, sports and growth.”
“We need to get closer to athletes and consumers, make decisions faster and focus our investments on the areas that create the most value,” he said.
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Nike said Pace is expected to generate approximately $2.5 billion in savings through fiscal 2031. (JIM WATSON/AFP via Getty Images)
Nike said Pace is expected to generate about $2.5 billion in savings through fiscal 2031, with most of those savings expected in fiscal 2029 and 2030, according to Reuters.
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Nike said it would share more details about the restructuring at its investor day on November 16-17.
In April, the company announced the hiring of approximately 1,400 people across Nike The global operations team would be laid off. At the time, Chief Operating Officer Venkatesh Alagirisamy said the cuts would primarily affect the company’s technology division and would span North America, Asia and Europe, representing just under 2% of Nike’s global workforce.
Michael Sinkewicz of FOX Business and Reuters contributed to this report.
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