Nike Signals New Layoffs From 2027 in 'Pace' Overhaul

Nike expects a fresh round of job cuts to begin in calendar year 2027, with the company projecting roughly $2.5 billion in cumulative savings through fiscal 2031 from a new operating model it calls "Pace" — and roughly $1 billion in pre-tax charges, mostly employee-related, over the same period.

President and CEO Elliott Hill announced the plan in a memo to employees published Thursday, alongside Nike's fiscal first-quarter 2027 results. The restructuring is the latest step in the company's attempt to reverse several years of weak performance, and it lands on a workforce that has already absorbed successive rounds of cuts in 2026.

"This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty," Hill wrote. "I don't take that lightly. Throughout this process, we will communicate directly, act with transparency and treat people with respect."

The CEO cautioned employees against reading specifics into early numbers. "We have shared some financial information, but these numbers are estimates and could materially change," he said. "Anything 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." He added that for most employees, "the work immediately in front of you remains the same."

For individual workers, the most concrete signals sit in the geography restructuring. Starting in fiscal 2028, Nike will collapse four geographies into three: the Americas, combining North America and Latin America; APGC, combining Asia Pacific and Greater China; and EMEA, unchanged. The APGC leadership team will be based in Singapore, and some roles currently supporting the region from Beaverton, Oregon, will relocate closer to the markets they serve. That shift puts regional-support jobs tied to the U.S. headquarters at the highest visibility of change.

Pace also includes modernizing Nike's global supply chain, further streamlining to reduce costs, and building a new campus in Bengaluru, India. "India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," Hill wrote. Full-time employees on the Bengaluru campus will support work across Nike, Jordan Brand and Converse, with existing India-based staff moving in phases and the campus growing over the next several years. For job seekers, that signals durable hiring demand in India even as headcount shrinks elsewhere.

Hill framed the cuts as a redirection of investment toward "product innovation, brand storytelling, consumer connection, sport and growth," and said affected employees will hear directly from their leaders with clear timelines and support. Where local consultation is required, Nike will not finalize proposals until that process concludes.

The layoffs build on an already difficult year for Nike staff. In April, COO Venkatesh Alagirisamy announced cuts affecting approximately 1,400 operations roles across North America, Europe and Asia — less than 2 percent of global headcount, the company confirmed. In January, Nike disclosed nearly 800 job cuts tied to consolidating U.S. distribution center operations in Tennessee and Mississippi. Converse followed weeks later with its own reductions, without disclosing numbers.

The financial backdrop explains the pressure. First-quarter fiscal 2027 net income fell 2 percent year over year to $712 million from $727 million, with diluted earnings per share of 48 cents versus 49 cents. Net sales dropped 4 percent to $11.2 billion from $11.7 billion on a reported basis, and 5 percent currency-neutral.

Nike expects approximately $300 million of the restructuring charges to be recognized in fiscal 2027, on top of roughly $300 million in severance costs booked in fiscal 2026 — meaning the headcount reductions, and the uncertainty surrounding them, will remain a live issue for Nike employees well into 2027 and beyond.