Nike CEO Elliott Hill has warned employees that more job cuts are on the horizon as the sportswear giant implements a sweeping overhaul of its operating model. In a memo released Thursday, Hill introduced a strategic plan called Pace, designed to streamline the company’s global structure and accelerate its Sport Offense strategy. While Hill acknowledged that the announcement creates significant uncertainty for staff, he framed the moves as necessary steps to ensure long term growth and cost reduction.
The reorganization involves a major shift in how Nike manages its global presence, reducing its regional divisions from four down to three. By merging North America with Latin America into one Americas region and combining Asia Pacific with Greater China into an APGC division, Nike hopes to push decision making closer to the actual markets it serves. As part of this transition, leadership for the APGC region will relocate to Singapore, meaning some roles currently based at Nike’s headquarters in Beaverton, Oregon, will be shifted overseas.
Looking toward future expansion, Hill also announced plans for a new campus in Bengaluru, India. Describing India as both a vital growth market and a manufacturing hub, the company intends for this new facility to house teams supporting Nike, Jordan Brand, and Converse. This investment is meant to tap into local talent and strengthen technical capabilities while moving resources away from traditional corporate hubs.
Financially, Nike believes these aggressive changes will yield roughly 2.5 billion dollars in cumulative savings by fiscal 2031. However, achieving those goals comes with a high price tag in employee related costs and severance payments totaling hundreds of millions of dollars over the coming years. These upcoming reductions are slated to begin in calendar year 2027 and follow several previous rounds of layoffs aimed at turning around the business after stagnant performance.
The timing of the announcement coincides with a dip in quarterly results, as net sales fell slightly compared to last year and diluted earnings per share saw a small decline. For now, Hill maintains that most employees can continue their daily work without immediate disruption, though he cautioned that any current media speculation regarding specific headcounts is premature since final numbers have not yet been determined.
