Nike Chairman and CEO Elliott Hill hoped to allay the fears of employees bracing for more layoffs in a new memo posted online Thursday.
In the letter to employees, Hill announced changes to Nike’s operating model that will help “accelerate and evolve” the “Sports Offense” strategy and position the Swoosh for long-term growth.
The new plan, dubbed “Pace,” includes efforts to modernize Nike’s global supply chain, the creation of a new campus in India to strengthen its corporate capabilities, a realignment across three geographies and further streamlining of the organization to reduce costs.
“This work will result in a reduction in the number of positions within Nike, and I want to recognize that such news creates uncertainty,” Hill admitted in the memo. “I do not take this lightly. Throughout this process, we will communicate directly, act with transparency and treat people with respect.”
Decisions on relevant roles related to this work will begin in calendar year 2027 and beyond, the CEO said.
“For most teammates, the work immediately ahead of us remains the same,” Hill said. “We have shared some financial information, but these numbers are estimates and could change significantly. Anything you may see in the media regarding impacts is speculative as we do not yet know the number of roles or the specific location of positions.”
Among the changes that will certainly affect the roles is the restructuring of the company in its geographies. Starting in fiscal 2028, Nike will move from four geographies to three to bring “more decisions, responsibilities and resources closer to the markets we serve,” Hill wrote.
The three geographic zones will be: the Americas, bringing together North America and Latin America; APGC, bringing together Asia-Pacific and Greater China; and EMEA, which will continue to operate where it does today.
As part of the change, Hill said APGC’s leadership team will be based in Singapore and some positions that currently support the region from Beaverton, Ore., will move closer to “the markets they serve.”
Another measure mentioned in Pace is establishing a new Nike campus in Bangalore, India. “India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent,” Hill noted. “The Bangalore campus is a long-term investment in new capabilities and talent to strengthen how we serve athletes around the world, including in India. »
The CEO said full-time Nike teammates on this campus will support the work of Nike, Jordan Brand and Converse. Teammates already in India will evolve in stages and the campus will expand over the coming years.
Hill added: “These decisions aim to redirect investments to the areas most critical to winning: product innovation, brand storytelling, consumer connection, sports and growth. Teammates affected by these changes will hear directly from their leaders, with clear timelines and support as decisions are made. Where local consultation is required, we will not finalize proposals until this process is complete.”
Nike said Thursday that it expects Pace to realize approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion in pre-tax charges, primarily comprised of personnel-related costs, through fiscal 2031, in addition to approximately $300 million in severance recognized in fiscal 2026. Nike expects that that approximately $300 million be recognized in fiscal year 2027.
This is just the latest round of layoffs to hit the Swoosh in its attempt to turn around the company after several years of struggling performance.
In April, Nike Chief Operating Officer Venkatesh Alagirisamy revealed a series of layoffs in a memo, which said the move was part of the “next phase” of the company’s “Win Now” turnaround plan. In total, the company confirmed to FN that approximately 1,400 operational positions were impacted across North America, Europe and Asia, and represent less than 2% of the company’s total global workforce.
The April memo followed the revelation in January that nearly 800 jobs were set to be eliminated at Nike as Nike consolidated its U.S. distribution center operations at its facilities in Tennessee and Mississippi. And a few weeks later, Converse set its own discounts, although the exact number of people affected was not disclosed at the time.
Thursday’s news comes just as Nike reports its first-quarter 2027 results. The Beaverton, Oregon-based company’s net income in the first quarter of fiscal 2027 was $712 million, down 2% from $727 million in the same period last year. Diluted earnings per share in the first quarter were 48 cents, compared to 49 cents per share in the first quarter of 2026.
Net sales for the quarter were $11.2 billion, down 4 percent from $11.7 billion in the first quarter of last year on a reported basis, and down 5 percent on a currency-neutral basis.
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