Nike Announces Restructuring and Job Cuts to Save $2.5 Billion
Nike is restructuring its global operations and cutting jobs to save $2.5 billion by 2031 following a steep sales decline in China.
Nike shares fell nearly 10% in trading on October 2, 2026, after the company issued a lowered revenue outlook and announced a major global restructuring. Nike now expects revenue to decline by a high-single-digit percentage this fiscal year, a sharper drop than the 2.4% decline analysts had previously forecast.
CEO Elliott Hill announced a plan to generate $2.5 billion in savings by fiscal 2031, with the bulk of the reductions occurring in fiscal years 2029 and 2030. The restructuring involves consolidating four geographic regions into three: the Americas, EMEA, and Asia Pacific and Greater China. This includes merging Latin America with North America and integrating the Greater China unit into the Asia Pacific division. The company also plans to establish a new campus in India to expand talent and capabilities.
The moves follow a 26% drop in first-quarter sales in Greater China, marking nine consecutive quarters of decline. To regain control over pricing and distribution, Nike will remove online sales rights from several major Chinese retail partners starting in January. Hill noted that the performance business is not yet large enough to offset pressures in the Jordan brand, Nike sportswear, and the Chinese market.
The restructuring will result in approximately $1 billion in pretax charges and the elimination of roles, with employee notifications expected to begin in 2027. Financial analysts from firms including UBS and Morgan Stanley responded by lowering price targets, warning that the company's turnaround is taking longer than expected due to weak demand.
