Strategy And Planning

Nike plans job cuts as it forecasts lower sales

October 3, 2026
www.ETHRWorld.com
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  • Published On Oct 3, 2026 at 12:11 PM IST

Nike lays a big long-term bet on India with new Bengaluru campus​ />New York: Nike plans to cut an undetermined number of jobs and establish a new campus in India as it seeks to accelerate a turnaround following another downcast quarter.<br><br>The sports giant unveiled the plan as it reported a modest decline in quarterly profits on lower sales.<br><br>The company projected sales in the current fiscal year would fall by ” an=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/134653766.cms” digits=”” earnings=”” height=”442″ high-single=”” loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” statement.=”” to=”” width=”590″></img></p> <p>“We’re building Nike for the long term,” Chief Executive Elliot Hill said during a conference call in which he touted the company’s burgeoning relationship with women’s basketball star Caitlin Clark.</p> <p>Nike reported a two percent drop in quarterly profits to $712 million. Revenues fell four percent to $11.2 billion for the quarter ending August 31, the first quarter of Nike’s fiscal 2027.</p> <p>Other than North America, where revenues grew two percent, Nike saw declines in every other region.</p> <p>The sports giant suffered an especially big drop in Greater China, a badly slumping area. In that geography, revenues fell 22 percent to $1.2 billion.</p> <p>Hill also cited the need for improvement in sportswear and the Jordan brand.</p> <p>Hill rejoined Nike as CEO in October 2024 as the company sought a pivot due to problems that included an oversupply of too many items that sold poorly and an ill-conceived shift to direct sales that left the company underrepresented with key retailers.</p> <p>Hill told analysts the company has made progress since his return, but that deeper changes were needed following a comprehensive review.</p> <p>Nike “must make changes to become a more agile, efficient and athlete-focused company,” Hill said in a message to employees.</p> <p>These shifts “will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty,” said Hill, who promised “transparency” as the plans become clearer.</p> <p>“Decisions about impacted roles related to this work will begin in calendar year 2027 and beyond,” Hill said.</p> <p>Nike plans a new campus in Bengaluru, India, which will represent “a long-term investment in new capabilities and talent to strengthen how we serve athletes around the world, including in India,” Hill said in the message.</p> <p>Neil Saunders, managing director of GlobalData, said the latest results show “Nike’s brand heat continues to fade and it isn’t powerful enough to punch back against more nimble competitors.”</p> <p>The company’s forecast for a further decline in revenues was particularly troubling, said Saunders, who called the outlook “shabby.”</p> <p>Shares of Nike tumbled 7.1 percent in after-hours trading. </p> <div> <div> <ul> <li><a href=AFP

  • Published On Oct 3, 2026 at 12:11 PM IST

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