Nike Cuts Jobs Again as Revenue Decline Looms Large

Nike's (NKE) plans for job cuts continue into next year as the company posted disappointing Q1 earnings, citing a high-single-digit decline in revenue for fiscal 2027. The footwear giant has already eliminated over 2,100 tech and distribution roles across two tranches this year.

The layoffs are part of Nike's Pace operational transformation, which aims to consolidate its four global operating divisions into three by the end of next year. While management confirmed a third wave of job cuts will commence in 2027, details on the number of roles to be eliminated were withheld, leaving investors uncertain.

Nike expects to deliver around $2.5 billion in cumulative cost savings through fiscal 2031 from its broader restructuring efforts. However, markets are focused on short-term consequences, with Greater China sales continuing to disappoint and no re-acceleration expected soon.