Nike plans more job cuts and geographic changes after forecasting sharp revenue drop
NKE•Nike plans additional job cuts and a shift to three geographic regions after forecasting a high-single-digit revenue decline in fiscal 2027. First-quarter sales were $11.2 billion, below analysts’ $11.32 billion estimate, while China sales fell 26% on a constant-currency basis.
1. Restructuring plans
Nike announced additional job cuts and a change from four geographic divisions to three: Americas, Asia Pacific and Greater China, and EMEA. The company said it does not yet know how many employees or which roles will be affected, and expects to begin notifying employees in 2027. It also plans to open a campus in India.
2. Revenue outlook and results
Nike expects revenue to decline by a high-single-digit percentage in fiscal 2027, after previously forecasting a low-to-mid-single-digit decline in the first half. First-quarter sales were $11.2 billion, compared with analysts’ average estimate of $11.32 billion. Gross margin rose 60 basis points to 42.8% for the quarter ended August 31.
3. China remains weak
China sales fell 26% on a constant-currency basis in the first quarter, marking nine consecutive quarters of declines. Nike’s restructuring program, which builds on an earlier push, is expected to deliver about $2.5 billion in savings through fiscal 2031.
