Nike president and chief executive officer Elliott Hill sought to qualm fears among employees bracing for more layoffs in a new memo published online on Thursday, outlining a sweeping corporate overhaul aimed at positioning the iconic athletic brand for long-term financial recovery and operational agility.
In the letter addressed directly to the company’s global workforce, Hill announced significant changes to Nike’s operating model designed to "accelerate and scale" the execution of the company’s core "Sport Offense" strategy. The newly revealed strategic plan, officially dubbed "Pace," encompasses a multifaceted series of corporate initiatives. These include extensive efforts to modernize Nike’s global supply chain infrastructure, the establishment of a brand-new corporate campus in India to significantly fuel enterprise capabilities, a major structural realignment consolidating the company’s operating geographies from four down to three, and further organizational streamlining intended to substantially reduce structural costs across the business.
"This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty," Hill openly admitted in the candid internal memo. "I don’t take that lightly. Throughout this process, we will communicate directly, act with transparency and treat people with respect."
According to the chief executive officer, official corporate decisions regarding specific roles impacted by this sweeping restructuring initiative will begin to unfold systematically throughout the calendar year 2027 and extend beyond.
"For most teammates, the work immediately in front of you remains the same," Hill reassured employees in the message. "We have shared some financial information, but these numbers are estimates and could materially change. 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."
Among the structural changes guaranteed to affect staffing levels and organizational architecture is the company’s comprehensive restructuring of its global geographic divisions. Beginning officially in fiscal year 2028, Nike will transition from operating across four distinct geographies down to three streamlined regions. The stated objective of this geographic consolidation is to bring "more decisions, accountability and resources closer to the markets we serve," Hill wrote in the memo.
Under the new operational map, the newly formed geographies will consist of the Americas, which successfully brings together the previously separate North America and Latin America divisions; the APGC region, merging Asia Pacific and Greater China; and EMEA, which will continue operating within its established framework much as it does today.
As a direct consequence of this geographic streamlining, Hill noted that the leadership team for the APGC region will be permanently based out of Singapore. Furthermore, a portion of the corporate roles currently supporting operations in that specific region from Nike’s traditional global headquarters in Beaverton, Oregon, will be relocated geographically to operate much closer to the physical markets they directly serve.
Another major operational move highlighted within the parameters of the Pace strategy is the establishment of a brand-new Nike corporate campus located in Bengaluru, India.
"India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," Hill noted in the communication. "The Bengaluru campus is a long-term investment in new capabilities and talent to strengthen how we serve athletes around the world, including in India."
The CEO added that full-time Nike teammates stationed at this new facility will provide vital support for work spanning across the enterprise, including the Nike master brand, Jordan Brand, and Converse. Team members who are already currently employed by Nike within India will be transitioned into the new facility in structured phases, with the campus footprint expected to expand and grow steadily over the course of the next several years.
Elaborating further on the strategic rationale behind the sweeping organizational changes, Hill explained that the overarching goal is to optimize how the company deploys capital.
"These decisions are about redirecting investment toward the areas most critical to winning: product innovation, brand storytelling, consumer connection, sport and growth," Hill stated. "Teammates affected by these changes will hear directly from their leaders, with clear timelines and support as decisions are made. Where local consultation is required, we won’t finalize proposals until that process is complete."
Alongside the operational and structural announcements, Nike revealed concrete financial projections associated with the Pace initiative on Thursday. The company expects the strategic plan to deliver approximately $2.5 billion in cumulative cost savings through fiscal year 2031. To achieve these long-term efficiencies, Nike anticipates recording approximately $1.0 billion in pre-tax charges through fiscal 2031, which will primarily consist of employee-related restructuring costs. This includes approximately $300 million of severance-related expenses recognized during fiscal year 2026, alongside an additional expected $300 million to be recognized in fiscal year 2027.
The introduction of the Pace initiative represents just the latest in a continuous series of restructuring efforts and workforce reductions to hit the Swoosh as executive leadership strives to turn around the business following several consecutive years of challenging financial and operational performance.
The ongoing cost-cutting trajectory follows multiple previous announcements aimed at right-sizing the organization. In April, Nike’s chief operating officer, Venkatesh Alagirisamy, revealed a round of corporate layoffs via an internal memo, which at the time was described as an integral component of the "next phase" of the company’s overarching "Win Now" turnaround strategy. Corporate communications confirmed that approximately 1,400 operations and technology roles were directly impacted across North America, Europe, and Asia, representing slightly less than 2 percent of the company’s total global headcount at the time.
That April announcement followed closely on the heels of a corporate disclosure made in January, which revealed that nearly 800 jobs were slated for elimination as Nike aggressively consolidated its domestic U.S. distribution center operations across massive facilities located in Tennessee and Mississippi. Just weeks after that distribution consolidation became public knowledge, Converse—a subsidiary brand under the Nike corporate umbrella—announced its own separate round of job cuts and internal reorganization, although specific numerical figures regarding the scope of the Converse layoffs were not publicly disclosed at that time.
Thursday’s major strategic announcements coincided directly with the release of Nike’s financial results for the first quarter of fiscal year 2027. According to the newly published earnings report, net income at the Beaverton, Oregon-based athletic footwear and apparel giant reached $712 million for the first quarter of fiscal 2027, representing a modest decrease of 2 percent compared to the $727 million reported during the exact same period last year. Diluted earnings per share for the first quarter stood at 48 cents, ticking down slightly from the 49 cents per share recorded in the first quarter of fiscal 2026.
Meanwhile, net sales for the quarter totaled $11.2 billion, marking a 4 percent decline from the $11.7 billion reported in the first quarter of the previous fiscal year on a reported basis, and down 5 percent when calculated on a currency-neutral basis.
