Archive · 2 Oct 2026
Nike Restructuring Adds Job Cuts as China Sales Fall
Nike is changing how it runs its business because sales have been weakening.
Sales in Greater China dropped 26% during the latest quarter, and the region has declined for nine quarters in a row.
Nike’s total quarterly revenue also fell to $11.21 billion, which was below analysts’ expectations.
The company plans to cut more jobs, although it has not said how many positions will be affected.
Employees are expected to be notified about the cuts in 2027.
Nike will replace four geographic divisions with three and plans to open a campus in India.
The changes are expected to save about $2.5 billion by fiscal 2031.
Nike says it needs to strengthen its Sportswear, Jordan Brand, and Greater China businesses.
Some analysts believe Nike needs more appealing products, while the company is also trying to control pricing and distribution in China.
Nike plans additional job cuts and will reorganize its business into three geographic regions.
Greater China sales fell 26% on a constant-currency basis, marking the region’s ninth consecutive quarterly decline.
Nike expects the restructuring to generate approximately $2.5 billion in savings through fiscal 2031.
First-quarter revenue declined 4% to $11.21 billion, below analysts’ estimates of roughly $11.32 billion to $11.33 billion.
Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and plans a new campus in India.
- Who
- Nike, led by CEO Elliott Hill, announced the restructuring; analysts and investors are evaluating the plan.
- What
- Nike plans additional job cuts, a three-region operating structure, cost savings, and a new campus in India.
- When
- The announcement followed the first quarter ended August 31; employee notifications are expected to begin in 2027.
- Where
- The restructuring affects Nike globally, with particular weakness in Greater China and a planned campus in India.
- Why
- Nike is responding to declining demand, intense competition, weak product momentum, discounting, and pressure in its Greater China, Sportswear, and Jordan businesses.
Nike’s strategy
Analysts’ concerns
Cause of China weakness
Nike’s strategy
Nike is tightening control over pricing and distribution by removing online sales rights from some major Chinese retail partners, arguing that the cleanup may take multiple seasons.
Analysts’ concerns
Some analysts argue that Nike’s main problem is not distribution but a lack of products that Chinese consumers want.
Restructuring plan
Nike’s strategy
Nike says reorganizing its regions, reducing roles, and focusing on key sports can improve efficiency and strengthen weaker businesses.
Analysts’ concerns
Analyst Neil Saunders said the changes suggest Nike’s existing model is not fit for purpose and questioned why the changes were not made sooner.
Product strategy
Nike’s strategy
Elliott Hill said Nike is rebuilding its performance business and deliberately reducing the volume of Jordan retro launches while it strengthens weaker areas.
Analysts’ concerns
Analysts say Nike’s difficulties largely stem from failing to release enough new, compelling products, contributing to greater promotions and discounts.
- Greater China sales
- Down 26% on a constant-currency basis in the first quarter; the region has declined for nine consecutive quarters.
- First-quarter revenue
- $11.21 billion, down about 4% from a year earlier and below analysts’ estimates of approximately $11.32 billion to $11.33 billion.
- First-quarter net income
- $712 million, compared with $727 million a year earlier.
- Restructuring savings
- Approximately $2.5 billion expected through fiscal 2031, with most savings anticipated in fiscal 2029 and 2030.
- New regional structure
- Americas; Asia Pacific and Greater China; and Europe, the Middle East and Africa.
- Job-cut timing
- Nike has not determined the number of affected roles and expects to notify employees in 2027.
- Fiscal 2027 outlook
- Revenue is expected to decline by a high-single-digit percentage.
- North America sales
- Up 2% on a constant-currency basis in the first quarter.
