Nike to cut jobs amid expected multibillion-dollar decline in revenue

By the Editorial Team · Saturday, October 3, 2026

Nike announced workforce reductions and a forecasted revenue decline after reporting a 4 percent drop in first-quarter sales, with significant losses in China and challenges in its Jordan brand. The company plans to save $2.5 billion through cost-cutting and restructuring while investing in growth markets like India to enhance agility and local consumer focus.

Nike announced plans to reduce its workforce and forecasted a significant decline in revenue for the current fiscal year, citing stalled sales across key markets including the United States and China. The company revealed these details alongside its first-quarter financial results, marking a challenging period as demand for its footwear and sportswear softens globally.

For the quarter ending in August, Nike reported revenue of $11.2 billion, a 4 percent decrease compared to the same period last year and below analyst expectations. Net income declined 2 percent to $712 million. The most pronounced drop occurred in China, where sales fell 22 percent as local competitors, many with origins as manufacturers for Western labels, have gained market share at Nike’s expense.

Nike’s basketball brand, Jordan, also contributed to the company’s sluggish performance. CEO Elliott Hill noted that the brand had suffered from overproduction and planned to return to a scarcity-driven model to reinvigorate demand for key retro products.

The company’s new cost-cutting initiative, dubbed Pace, aims to save $2.5 billion over the next five years. As part of this effort, Nike intends to reduce its total workforce of approximately 73,000 employees, though it has not detailed the specific number of job cuts or their geographic distribution. The restructuring will also include consolidating its four geographic business units into three.

Despite the reductions, Nike is investing in growth opportunities, including plans to open a new campus in Bengaluru, India. Hill emphasized India’s strategic importance as both a growth market and manufacturing hub, citing its strong talent pool and operational capabilities.

Hill characterized the company’s ongoing transformation as a move toward becoming more agile and focused on serving athletes and consumers locally. He described the job cuts as part of a broader effort to redirect resources toward innovation, brand development, consumer engagement, sports performance, and expansion priorities.

Following the earnings report, Nike’s shares fell more than 6 percent in midday trading on the New York Stock Exchange. Hill is approaching his two-year anniversary as CEO, tasked with steering the company through a turnaround after years of reliance on established brands and struggles in the retail environment amid a shift to direct-to-consumer sales.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.