Nike intends to conduct a comprehensive restructuring process that includes a gradual reduction in the number of its employees, in a move aimed at enhancing the flexibility and efficiency of the sportswear giant, and restoring its growth path in light of declining sales and mounting pressure in major markets, most notably the Chinese market, which witnessed a 26% decline in revenues at fixed exchange rates during the past quarter.
The company’s CEO, Elliott Hill, informed employees that the reorganization process will lead to a reduction in the number of jobs over time, and he expected to begin making job-related decisions during the year 2027. Hill explained that the currently circulating numbers remain estimates and are subject to change, with the exact size of layoffs or affected locations not being determined yet, stressing the company’s commitment to consulting with employee representatives and complying with local legal requirements.
These steps fall within a strategic initiative that the company called “Pace,” which includes modernizing the supply chain, reorganizing operations within three geographical regions, establishing a new complex in the Indian city of Bengaluru, in addition to reformulating the operating model and workforce.
In the same context, the company will move its Asia Pacific and Greater China leadership team to Singapore, which will require the transfer of some functions from its headquarters in Beaverton, Oregon, to locations closer to its target markets, with these shifts beginning during the fiscal year 2028.
The CEO confirmed that the plan aims to direct larger investments towards product innovation, brand marketing, and direct communication with consumers and athletes, as well as accelerating the pace of decision-making. The company is based on the “Pace” plan to achieve financial savings estimated at approximately $2.5 billion until the fiscal year 2031, with the greatest impact of these savings appearing during the years 2029 and 2030, with the administration revealing more details during the Investors Day scheduled to be held on November 16 and 17.
These anticipated developments come as an extension of the ongoing restructuring efforts. Last April, Nike announced the layoff of about 1,400 employees, representing slightly less than 2% of its total workforce, most of whom were concentrated in the global operations team and the technology department across North America, Europe, and Asia.
The post Nike threatens to lay off new workers as part of a strategy to reduce costs by $2.5 billion appeared first on Lebanon Today website.
