NEW YORK: Nike, the US sportswear giant behind brands such as Nike and Jordan, is planning job cuts as it struggles to revive sales. The move comes as quarterly revenue and profits decline, with a sharp downturn in China adding to pressure on the company’s global business.
The company revealed the restructuring plans while reporting a modest fall in quarterly profits and warning that sales in the current fiscal year are expected to decline by “high-single digits”.
“We’re building Nike for the long term,” Chief Executive Elliot Hill said during an earnings call, highlighting the company’s partnership with women’s basketball star Caitlin Clark.
Nike reported a 2 percent decline in quarterly profit to $712 million, while revenue dropped 4 percent to $11.2 billion in the quarter ending August 31, the first quarter of its fiscal 2027.
The company recorded revenue growth only in North America, where sales increased 2 percent. All other regions reported declines, with Greater China suffering the largest drop as revenue fell 22 percent to $1.2 billion.
Improvements in sportswear
Hill said Nike needed further improvements in sportswear and its Jordan brand as part of its broader recovery strategy.
The CEO, who returned to Nike in October 2024, said the company had made progress but required deeper changes after a review of its operations.
“Nike must make changes to become a more agile, efficient and athlete-focused company,” Hill said in a message to employees.
He added that the changes would result in fewer roles across the company, with decisions on affected positions expected to begin in 2027 and beyond.
Nike also plans to build a new campus in Bengaluru, India, as a long-term investment aimed at developing new capabilities and strengthening its global operations.
Analyst Neil Saunders of GlobalData said Nike’s latest results showed challenges for the brand as competition from more agile rivals increased.
Nike shares fell 7.1 percent in after-hours trading following the announcement.
