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Nike cutting more jobs as turnaround struggles continue
The program is expected to save about $2.5 billion through 2031 as Nike seeks to reverse weak sales and reset its growth strategy.
- On Thursday, Nike CEO Elliott Hill announced 'Pace,' a restructuring program to save about $2.5 billion by 2031, including additional job cuts after forecasting a significant revenue decline for the year to May 31, 2027.
- Persistent sales pressure in Greater China, NIKE Sportswear, and Jordan Brand prompted the reorganization, as quarterly revenue fell 4% to $11.2 billion for the three months ended August 31.
- Shares fell 7.1% on Thursday after the announcement, while Citi analysts called Nike a "cost-cutting story" and maintained a "neutral" rating, citing guidance below market expectations.
- Under Pace, Nike will reorganize global operations into three geographic regions and establish a new campus in Bengaluru, India, with APGC leadership moving to Singapore to support local markets.
- Chief Financial Officer Dave Denton projects the majority of restructuring savings will arrive in fiscal 2029 and 2030, with decisions regarding affected roles beginning in calendar year 2027.
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The sporting goods giant Nike must save billions and cut down jobs. These are the reasons for the crisis.
·Zürich, Switzerland
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Nike continues to cut back: new job losses after sharp decline in China - RetailDetail EU
Now that the recovery is taking longer than expected, Nike is cutting jobs again. The sports giant is streamlining its global structure and aims to achieve $2.5 billion in cost savings by 2031. The ongoing downturn in China, in particular, is putting pressure on the turnaround under CEO Elliott Hill.
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Total News Sources11
Leaning Left2Leaning Right0Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
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