Nike president and chief executive Elliott Hill used an internal memo released Thursday to address employee concerns about further workforce reductions. The communication outlined a new operating‑model overhaul called “Pace,” which is intended to accelerate the company’s “Sport Offense” strategy and position the brand for long‑term growth.
Pace plan details
According to Hill, Pace will modernize Nike’s global supply chain, establish a new campus in Bengaluru, India, and streamline the organization to lower costs. The memo said the Bengaluru campus is a “long‑term investment in new capabilities and talent” that will support Nike, Jordan Brand and Converse. Existing teammates in India will relocate in phases, and the campus will expand over several years.
Hill emphasized that the changes are meant to redirect investment toward product innovation, brand storytelling, consumer connection, sport and growth. He promised that affected employees will receive direct communication, clear timelines and support, and that any local consultation required will be completed before final proposals are set.
Geographic realignment
Starting in fiscal 2028, Nike will shift from four regional divisions to three: Americas (combining North America and Latin America), APGC (merging Asia Pacific and Greater China), and EMEA, which will remain unchanged. The APGC leadership team will relocate to Singapore, and some roles currently based in Beaverton, Oregon, will move closer to the markets they serve.
Hill noted that for most teammates, “the work immediately in front of you remains the same,” while acknowledging that “this work will result in fewer roles across Nike” and that the news creates uncertainty. He added that the company has shared financial estimates but those numbers could change, and media reports on the impact remain speculative because exact role counts and locations have not yet been determined.
Financial impact and previous cuts
Nike expects the Pace initiative to generate roughly $2.5 billion in cumulative savings through fiscal 2031. The plan includes about $1.0 billion of pre‑tax charges—primarily employee‑related costs—through the same period, plus $300 million in severance costs recognized in fiscal 2026 and another $300 million in fiscal 2027.
The announcement follows a series of layoffs that began earlier this year. In April, chief operating officer Venkatesh Alagirisamy disclosed a “next phase” of the “Win Now” turnaround, confirming that about 1,400 operations roles were cut across North America, Europe and Asia—less than 2 percent of Nike’s global headcount. Earlier, in January, Nike announced the elimination of nearly 800 jobs as it consolidated U.S. distribution centers in Tennessee and Mississippi. Converse also announced cuts weeks later, though numbers were not disclosed.
The latest memo coincided with Nike’s first‑quarter fiscal 2027 earnings release. Net income fell 2 percent to $712 million, while diluted earnings per share slipped to 48 cents from 49 cents a year earlier. Net sales declined 4 percent to $11.2 billion on a reported basis and 5 percent on a currency‑neutral basis.
Hill concluded the memo by reiterating a commitment to transparency and respect throughout the restructuring process, acknowledging the difficulty of the upcoming decisions and the company’s focus on positioning the Swoosh for sustainable growth.
Helene Elliott is the Lead Science & Space Reporter at News Raise. She reports on aerospace missions, astrophysics discoveries, quantum research, and environmental technology.
