Oregon Giant Nike Stock Sinks to Lowest Level Since 2013 as China Sales Plunge 26% and More Job Cuts Loom
Nike is preparing for workforce reductions as it begins a major restructuring of its global operations after forecasting declining revenue for fiscal 2027.
Nike Shares Tumble as Sales Outlook Worsens
The sportswear company reported first-quarter revenue of $11.2 billion in fiscal year 2027, down 4% from a year earlier.
The company said revenue is expected to decline by a high-single-digit percentage for the full fiscal year. Greater China remained a major weakness, with Nike Brand revenue in the region falling sharply, while North America recorded growth.
Nike’s shares fell following the earnings announcement, and reached their lowest level since 2013. An announcement of a new operating model called Pace accompanied the results.
Nike expects the program to generate approximately $2.5 billion in cumulative savings through fiscal year 2031, while incurring about $1 billion in pretax restructuring charges, primarily related to employees. About $300 million of those charges is expected in fiscal year2027.
Nike President and CEO Elliott Hill told employees that the changes will result in fewer roles across the company. And decisions about affected positions are expected to begin in 2027 and continue thereafter. However, Hill said Nike doesn’t yet know the number or specific locations of the jobs that will be affected yet.
Nike Restructuring Will Move Some Jobs Out of Oregon
The national changes at Nike affect some Oregonians. Nike, headquartered in Beaverton, plans to reorganize its operations into three regions- the Americas, Asia Pacific and Greater China (APGC), and Europe, the Middle East and Africa.
While the APGC leadership team will be based in Singapore, some roles currently supporting the region from Beaverton will move closer to the markets they serve.
The transition is expected to take place during fiscal 2028, and Nike also plans to establish a new campus in Bengaluru, India, where employees will support Nike, Jordan Brand and Converse.
The company said that Pace will also modernize its supply chain and reduce organizational layers as it seeks to respond faster to consumers and invest in product innovation.