Nike is preparing another round of job cuts and a broader reorganization as Chief Executive Elliott Hill tries to accelerate a turnaround that has yet to restore consistent growth.
Reuters reported that Greater China sales fell 26% in the company’s latest quarter, marking a ninth consecutive quarterly decline in the market. Nike also warned that full-year revenue is expected to fall in the high single digits, a steeper decline than analysts had anticipated.
Business will be reorganized around three regions
The sportswear company plans to simplify its global structure into three geographic regions. Nike is also tightening inventory management, rebuilding wholesale relationships and trying to reduce its dependence on heavily discounted lifestyle products.
Hill has focused the turnaround on performance categories such as running and basketball, while cutting back older retro products that had become over-supplied. The Jordan brand and several core sportswear lines remain under pressure.
Cost savings will take time
Nike expects its restructuring to generate about $2.5 billion in savings through fiscal 2031, but much of the benefit is expected later in the plan. That means investors may have to wait before lower costs materially improve earnings.
The company is also expanding in India with a new campus, even as it reduces staffing elsewhere. The mixed strategy reflects Nike’s attempt to lower operating costs while continuing to invest in product development, digital capabilities and growth markets.
Nike’s challenge is not only cost control. The company must also rebuild product momentum and consumer demand in China while defending market share against faster-growing rivals.
Sources: Reuters, Oct. 1-2, 2026; Nike investor-relations disclosures and fiscal 2027 earnings materials.
