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New York, Oktober 3, 2026 – Nike is bracing for one of its toughest years in recent memory, unveiling plans for further job cuts and sweeping geographic restructuring after forecasting a sharp revenue decline.
The sportswear giant expects a high single digit drop in fiscal 2027 revenue, far worse than analysts’ projections of a modest 2 percent fall.
The announcement sent shares tumbling 8.5 percent in extended trading, underscoring investor anxiety about the company’s turnaround prospects.
Chief Executive Elliott Hill outlined a plan to streamline operations, reducing Nike’s global divisions to three regions: Americas, Asia-Pacific & Greater China, and EMEA.
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The company also intends to open a new campus in India, tapping into local talent pools as part of its broader restructuring.
Nike aims to generate $2.5 billion in savings by fiscal 2031, with the bulk realized between 2029 and 2030.
Layoffs are expected to begin in 2027, though the scale of job losses has not been disclosed.
The deepest wounds remain in China, where sales plunged 26 percent in the first quarter, marking nine consecutive quarters of decline.
Domestic rivals and international competitors have steadily eroded Nike’s market share, leaving the brand struggling to regain momentum.
In a bold move, Nike will revoke online sales rights from major Chinese retail partners starting January 2027, seeking tighter control over pricing and distribution.
Yet analysts warn the problem runs deeper. BNP Paribas noted that Nike’s challenge is not distribution but a “product problem,” with insufficient innovation to capture consumer interest.
Investor sentiment has soured. Nike was recently removed from the S&P 100 index after 18 years, a symbolic blow to its blue chip status.
Neil Saunders of GlobalData argued the restructuring underscores that Nike’s current model is “not fit for purpose,” questioning why changes were not enacted sooner.
The company’s reliance on heavy discounting has further dented brand prestige, while a deliberate slowdown in Jordan retro launches has weakened one of its strongest franchises.
Adding to the turbulence, French soccer star Kylian Mbappé ended his two-decade partnership with Nike, joining rival On.
Quarterly results reflected the strain: sales fell 4 percent to $11.21 billion, missing expectations, though gross margin improved to 42.8 percent thanks to lower logistics costs.
Hill acknowledged the road ahead will be long, stressing that rebuilding weak segments like sportswear and Jordan “will take time.”
While North America posted modest growth of 2 percent, the company’s global outlook remains clouded.
For Nike, the challenge is clear: reignite product innovation, stabilize China, and restore investor confidence in a brand once synonymous with unstoppable growth.
