Nike Layoffs: New Restructuring Plan Targets $2.5 Billion
Quick answer: Nike announced on October 1, 2026 that it will cut more jobs as part of a multi-year restructuring called Pace. The company has not said how many roles will go, but it expects to start notifying employees in 2027. The plan targets about $2.5 billion in savings through fiscal 2031, including roughly $1 billion in employee-related costs.
Key Takeaways
Nike says new layoffs will begin in calendar 2027, but it has not yet disclosed how many jobs will be affected.
The restructuring, named Pace, is expected to save about $2.5 billion through fiscal 2031, with about $1 billion tied to employee-related costs.
First-quarter revenue fell about 4% to $11.21 billion, slightly below analyst estimates, while sales in China dropped 26% on a constant-currency basis.
Nike will merge its regional structure from four geographies into three and plans a new corporate campus in Bengaluru, India.
The company now expects full-year revenue to fall by a high-single-digit percentage, a steeper drop than analysts had projected.
Nike is preparing another round of job cuts. On Thursday, October 1, 2026, the world's largest sportswear maker paired a disappointing first-quarter report with a restructuring plan that will reshape its regional structure, open a new campus in India and eliminate an as-yet undisclosed number of roles starting in 2027.
Chief executive Elliott Hill told employees in a note that the layoffs would take place in calendar 2027 and later, according to Sportico. Reuters reported that Nike does not yet know how many positions will be cut and that it plans to begin notifying affected staff next year.
What did Nike announce about layoffs?
The program, which Nike has named Pace, runs through fiscal 2031. The company expects it to generate roughly $2.5 billion in cost savings, with about $1 billion of that coming from what it describes as employee-related costs. Reuters noted that most of the savings are expected to land in fiscal years 2029 and 2030.
The job cuts are not happening in isolation. Reuters described the plan as building on earlier rounds of layoffs, including one announced earlier in 2026. For workers, that means the latest announcement is a continuation of a longer effort to shrink and reorganize the company rather than a one-off event.
Beyond headcount, the plan changes how Nike is organized around the world:
Reported geographies will drop from four to three: Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa (EMEA).
Until now, Greater China was a standalone geography and Latin America was reported together with Asia Pacific.
The realignment takes effect in fiscal 2028, which begins in June.
Nike will establish a new corporate campus in Bengaluru, India, which it said offers strong capabilities and access to talent.
The company also plans to update its supply chain.
How did Nike perform in the first quarter?
For the three months ended August 31, Nike reported revenue of about $11.21 billion, down roughly 4% from a year earlier. Analysts polled by S&P Global Market Intelligence had expected about $11.3 billion, according to Sportico, and Reuters put the average estimate at $11.32 billion. Profit came in at $712 million, down 2%, but ahead of the $646 million analysts had forecast.
There were some bright spots. Gross margin improved by 60 basis points to 42.8%, helped by lower warehousing and logistics costs. Sales in North America, Nike's largest region, rose 2% on a constant-currency basis, which Hill linked partly to the performance business benefiting from the World Cup.
The outlook was the bigger concern for investors. Nike now expects revenue for fiscal 2027 to fall by a high-single-digit percentage, while analysts had on average been looking for a decline of about 2%. Shares slid in extended trading after the release. Sportico reported a drop of roughly 4% to about $34, while Reuters cited a decline of 8.5%. Sportico noted the stock is down about 45% so far this year.
Why is Nike struggling?
China remains the sharpest pain point. Sales there tumbled 26% on a constant-currency basis in the quarter, and Reuters reported that revenue in the region has now declined for nine straight quarters. Greater China accounts for roughly 15% of Nike's annual revenue. Domestic brands such as Li Ning have gained ground, and Nike has said it will pull online sales rights from some of its largest retail partners in China starting in January. Hill warned that this cleanup will take multiple seasons and will weigh on near-term results in the region.
Hill was candid on the earnings call. He said the company's performance business is not yet large enough to offset pressure in Nike Sportswear, the Jordan brand and Greater China, and that reviving those areas will take time. Nike is intentionally releasing fewer Jordan retro styles.
The roots of the turnaround go back to 2024. Under former CEO John Donahoe, Nike identified that classic lifestyle shoes such as the Air Force 1 and Air Jordans were losing momentum. Hill, a longtime company veteran, took over and shifted focus back to performance products, removing roughly $2 billion worth of classic lifestyle shoes from the market. Running has been a strength, but Sportico noted the company still lacks a new hit lifestyle sneaker, while rivals such as On and Hoka gained traction with consumers after Nike pulled out of major retailers during Donahoe's tenure.
Other setbacks have piled up. French soccer star Kylian Mbappé ended a partnership of about two decades with Nike in September and joined On. That same month, Nike lost its place in the S&P 100 during a quarterly rebalancing, ending an 18-year run in the blue-chip index.
What happens next?
Starting in November, Nike plans to refresh its financial targets as the restructuring moves forward. Employee notifications are expected to start in 2027, and the geographic reorganization takes effect when fiscal 2028 begins in June. The company had withdrawn its annual forecasts in October 2024 to give Hill flexibility to assess the business.
Some analysts questioned the timing. Neil Saunders, managing director of GlobalData, told Reuters the plans suggest that Nike's current model is not fit for purpose and raise the question of why the changes were not made sooner.
What this means for you
If you work at Nike or one of its suppliers or retail partners, the most important detail is timing: the company says notifications will begin in 2027, and it has not yet said which teams or locations will be affected. That gives employees time to prepare rather than react.
Watch official channels. Rely on internal communications and Nike's public filings for details on which roles are affected, rather than social media speculation.
Refresh your resume now. Document recent achievements with numbers while they are fresh, and update your LinkedIn profile.
Understand the shift in priorities. Nike is leaning into performance categories such as running and is building talent capacity in India. Skills tied to performance products and supply chain operations align with the areas Nike highlighted in its plan.
Look across the industry. Retail and sportswear professionals can widen their search to other athletic and footwear brands rather than relying on a single employer.
For job seekers outside Nike, the announcement is a reminder that even well-known consumer brands are trimming corporate costs. Building transferable skills and keeping a strong professional network remain the best protection when a large employer restructures.
Frequently Asked Questions
How many jobs is Nike cutting?
Nike has not said how many roles will be eliminated. Reuters reported that the company does not yet know the number and will begin notifying employees in 2027.
When will the Nike layoffs happen?
CEO Elliott Hill told employees the layoffs would take place in calendar 2027 and beyond. The broader restructuring program runs through fiscal 2031.
What is Nike's Pace restructuring plan?
Pace is Nike's multi-year reorganization that trims the company's size, merges four regional geographies into three and updates its supply chain. It is expected to save about $2.5 billion, including roughly $1 billion in employee-related costs.
Why did Nike stock fall after earnings?
Nike forecast a high-single-digit decline in fiscal 2027 revenue, much steeper than the roughly 2% drop analysts expected, and first-quarter revenue slightly missed estimates. Sales in China also fell 26% on a constant-currency basis.
Is Nike opening a new office in India?
Yes. Nike said it will establish a new corporate campus in Bengaluru, India, citing strong capabilities and access to talent there.
Sources
This article was compiled by the Jobsiz newsroom from the sources listed above, with AI-assisted writing and automated fact-checking. Published October 1, 2026. We update stories when new verified information becomes available.