Nike's $2.5B Pace Restructuring Sets 2027 Layoff Start

Nike will begin laying off corporate staff in 2027 under a new restructuring program, Pace, that targets $2.5 billion in cumulative cost savings by 2031, the company said in its fiscal first-quarter results released Thursday.

The announcement, paired with a stock crash to a 13-year low, signals that Oregon's largest private employer is preparing a multi-year workforce reduction on top of the roughly 2,175 positions it has already eliminated this year.

Pace consolidates Nike's four sales regions into three and includes a new India campus. The company did not disclose a specific headcount target for the new round, but executives framed the program as the center of a turnaround attempt after revenue slipped 4% to $11.2 billion in the quarter ended August 31. Wall Street had expected $11.3 billion.

What does the labor-market picture look like?

Nike's prior cuts preview where future reductions will land. The company eliminated 775 distribution center roles in January, then announced roughly 1,400 more in April, concentrated in technology. Blue-collar warehouse work and white-collar digital roles are both exposed.

Layoffs formally begin in 2027, but hiring slowdowns and internal redeployment are likely in the interim, according to local reporting. Some Oregon jobs have already moved overseas.

CNBC's Jim Cramer captured the market mood: "Nike guide horrendous."

Where does the revenue pressure sit?

The cuts trace directly to a deteriorating operating picture. Nike forecast sales to fall by a high-single-digit percentage for the full fiscal year, with adjusted earnings of $1.15 to $1.35 per share — well below the $1.68 consensus.

Greater China revenue dropped 26% in currency-neutral terms, the steepest regional decline. CEO Elliott Hill said the company would wind down most online discount channels in the region: "The majority of our partners' physical doors in Greater China haven't been refreshed in the past seven years."

The Converse division shrank 28% to $263 million, with declines in every region. Nike's own digital sales fell 13%. The Jordan brand, 13% of company revenue last quarter, posted a similar drop. Hill on Jordan: "Simply put, we've been oversupplying our iconic retro product."

What does this mean for sector workers?

For apparel and footwear professionals, Nike's trajectory carries two practical signals. The company is shifting capital toward India, where it is opening a new campus — a likely destination for relocated corporate and technology roles. The $2.5 billion savings target, spread across five fiscal years, implies a sustained reduction in force rather than a one-time event.

Nike's stock closed Thursday at a $53 billion market cap, down from a $264 billion peak in November 2021, and fell another 9% after hours. The S&P Dow Jones committee removed Nike from the S&P 100 effective September 21 after an 18-year run. The stock now carries the smallest weight in the Dow at 0.4%.

With layoffs formally starting in 2027, the Pace program sets the next test for Oregon's tech and retail labor markets in the first quarter.