Nike extends turnaround timeline amid layoffs and sales declines
Nike said on Thursday it will lay off an unspecified number of workers next year after reporting a 4% drop in quarterly revenue to $11.2 billion. Converse sales fell 28% and Greater China revenue dropped 22%, while Nike warned that full‑year revenue could slip by a high‑single‑digit percentage.
Under the Pace plan, Nike will combine its geographic units into three groups: the Americas (North America and Latin America), APGC (Asia Pacific and Greater China), and EMEA (Europe, Middle East and Africa). The company said it will invest in a more flexible supply chain, open a Nike campus in Bengaluru, India, and shift resources toward product innovation, brand storytelling and consumer connection. Nike’s CEO Elliott Hill said the restructuring is meant to accelerate the Sport Offense strategy but will lead to job cuts and a longer turnaround than analysts expected.
“China and Converse are the two most obvious — indeed, between them they account for almost 86% of the group’s net sales decline,” Neil Saunders said.
Pace is Nike’s third restructuring program since fiscal 2024, following earlier efforts that have yet to deliver operating leverage. Analysts noted that the Win Now strategy, initially slated for completion by the end of 2025, was later pushed to the end of 2026 and now lacks a clear new timeline.
What we know
Nike’s Q1 earnings report Thursday proved there’s more work ahead for the sportswear giant, which previewed an unspecified number of layoffs coming next year as the retailer overhauls its operating model.
Not only was overall revenue down 4% to $11.2 billion, but Converse also continued its streak of monumental declines, falling 28% in the quarter.
specifically, Greater China revenue fell 22% in the period.
The company also released guidance for this fiscal year that foresees revenues falling in the high-single digits.