Key takeaways
- Nike reported a 4% revenue decline to $11.2 billion.
- The company expects fewer roles as restructuring efforts begin in 2027.
- Nike shares fell 7.1% in after-hours trading after the results.
Nike plans to cut an undetermined number of jobs as it restructures operations following another quarter of declining sales. The sportswear company also warned that revenue will fall by high single digits in the current fiscal year, sending its shares down 7.1% in after-hours trading.
Nike plans workforce cuts as sales remain under pressure
Nike reported quarterly profit of $712 million for the quarter ended August 31, down 2% from a year earlier. Revenue declined 4% to $11.2 billion.
The results showed continued weakness across most of Nike’s major markets. North America was the only region to record growth, with revenue rising 2%. Greater China remained a major source of pressure, with revenue falling 22% to $1.2 billion.
Nike CEO Elliot Hill said the company needs to become more agile and efficient following a comprehensive review of its business. The changes will result in fewer roles across the company, although Nike has not yet disclosed how many employees will be affected.
Hill said decisions involving affected positions will begin in calendar year 2027 and continue beyond that period. The company is expected to provide more details as the restructuring plans develop.
The Nike job cuts follow several operational challenges that Nike has been addressing since Hill returned as CEO in October 2024. The company had accumulated excess inventory and had also shifted more heavily toward direct sales, reducing its presence with some major retail partners.
Nike has since been working to adjust its product mix and distribution strategy. Hill also identified sportswear and the Jordan brand as areas where the company needs to improve performance.
The planned Nike job cuts are therefore part of a broader effort to reduce organizational complexity and align resources with the company’s current business needs.
Weak forecast sends Nike shares lower
Nike’s outlook added to investor concerns following the latest results. The company expects sales for the current fiscal year to decline by high single digits, indicating that revenue pressure could continue beyond the latest quarter.
The forecast came despite Nike’s efforts to improve its product lineup and distribution network. The company is also continuing to invest in selected areas, including a planned new campus in Bengaluru, India.
The market response was immediate. Nike shares dropped 7.1% in after-hours trading following the earnings announcement.
The decline adds another setback for the stock as investors assess the company’s turnaround plans against weaker sales. Nike’s results also show a significant difference between its regional markets, with North America growing while Greater China and other regions contracted.
For business operations, the restructuring now has two clear elements: reducing the workforce and reallocating resources toward areas where Nike expects stronger performance. The company has not provided a final figure for the number of Nike job cuts.
The next phase of the turnaround will depend on how quickly Nike implements these changes and whether they help improve sales and operating efficiency. For now, the combination of a 4% quarterly revenue decline, a high single-digit annual sales forecast, and a 7.1% after-hours share decline highlights the pressure facing the company.
