Nike launches $2.5bn restructuring programme amid revenue concerns

Nike is undergoing a major restructuring through its new Pace programme, aimed at delivering approximately $2.5 billion in cumulative savings by fiscal 2031. The company expects to incur about $1 billion in pre-tax charges related to the initiative, which includes employee-related costs and severance. CEO Elliott Hill noted that the company needs to strengthen its performance in Nike Sportswear, Jordan Brand, and Greater China.

The restructuring involves modernizing the global supply chain, reorganizing operations into three geographical regions, and establishing a new campus in Bengaluru, India, to access talent for Nike, Jordan Brand, and Converse. While specific headcount reductions for 2027 and beyond have not been finalized, the company has indicated that the work will result in fewer roles.

Financial markets have reacted to these developments and a difficult fiscal outlook. Nike forecasts that fiscal 2027 revenue will decline by a high-single-digit percentage. In certain markets, such as Argentina, investors have seen significant volatility in Nike-related assets, with some analysts advising caution until concrete operational improvements are visible.