Nike plans job cuts and forecasts steep revenue drop amid restructuring

Nike: Nike Inc. is a leading global sportswear company focused on designing, developing, and marketing athletic footwear, apparel, and equipment. Under CEO Elliott Hill, it is executing a restructuring plan that includes additional job cuts beginning in 2027 and a shift to a simplified three-region operating model to address persistent revenue pressures. The company is prioritizing product innovation in key categories like running while working to rebuild wholesale partnerships and resolve challenges in its China operations. Elliott Hill: Elliott Hill is the CEO of Nike, where he is overseeing a multi-year turnaround effort centered on refocusing the brand on core sports categories and improving product offerings. He has noted that weaknesses in the sportswear, Jordan, and Greater China segments require ongoing adjustments, including a deliberate slowdown in certain retro product launches. Hill has emphasized that the restructuring and China-specific changes, such as tighter control over online distribution, will take multiple seasons to show results. Product Focus: Analysts have pointed to insufficient new, compelling products as a key driver of Nike's recent performance issues, leading to greater reliance on promotions and highlighting the need for stronger innovation in categories like sportswear and the Jordan brand. Turnaround Strategy: Nike is consolidating its operations into three geographic regions and planning a new campus in India to build capabilities, building on prior restructuring efforts to better align its model with current market conditions. China Market Challenges: Nike has experienced sustained weakness in its China business amid rising competition from domestic sportswear brands and international rivals, prompting targeted measures like the removal of online sales rights from some retail partners starting in January.