Companies

Nike to reduce workforce as part of a new operating model

Oct 7, 2026 United States

The US-based sportswear company plans to reduce its workforce as part of a new operating model designed to simplify the company’s structure, cut costs and bring its operations closer to consumers

On the 1^st of October, Nike announced changes under a multi-year programme called ‘Pace’. In a note to his employees, CEO Eliot Hill said, “Decisions about impacted roles related to this work will begin in calendar year 2027 and beyond” and warned that “you may see in media reports around impacts is speculative because we do not yet know the number of roles or specific locations of positions”.

The new model includes reorganising Nike into three geographic regions: the Americas (which brings together North America and Latin America); APGC (which brings together Asia Pacific and Greater China); and EMEA, which will continue to operate as it does today.

Nike is also planning changes to its global supply chain, including new technology solutions and a more flexible cost structure, to improve speed and service, increase profitability and give the company greater flexibility to respond to changes in consumer demand. It also announced the establishment of a new campus in Bengaluru, India, an important growth market and manufacturing hub.

This announcement comes as Nike continues to navigate a challenging recovery period, and follows other rounds of layoffs. In the first quarter of the 2027 financial year, the company reported revenue of 11.2 billion US dollars. This represents a year-on-year decrease of 4% on a reported basis and 5% on a currency-neutral basis, primarily due to declines in Greater China and EMEA.

Nike expects Pace to generate about 2.5 billion US dollars in cumulative savings through fiscal 2031. The company also expects approximately 1 billion US dollars in pre-tax charges, mainly related to employee severance and other employee costs.

Image Credits: marathonhandbook.com

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