Nike announced an operating model overhaul called Pace that will cut roles across the company and deliver $2.5B in cumulative savings by fiscal 2031.
CEO Elliott Hill told employees the changes will help the company accelerate and scale its Sport Offense strategy.
Nike will start determining which jobs are affected in 2027, with further changes expected in the years that follow. The Oct. 1 memo did not specify the number of roles that could be eliminated.
Nike will spend $1B to unlock $2.5B in savings
Pace is expected to cost around $1B to implement, on top of $300M in severance costs already recorded. The savings land mostly in fiscal 2029 and 2030, meaning investors wait years for the payoff.
The $2.5B figure excludes restructuring charges and any future reinvestment, so the net benefit to earnings will be smaller.
Pace also builds on the cost realignment plan Nike announced in March 2026, making this the second cost program inside a year.
Nike is redrawing its global map
Nike is combining its North and Latin American operations into one geography, while Greater China will join the broader Asia Pacific region. It will open a campus in Bangaluru, India.
Hill also flagged a continued overhaul of the supply chain to make it more flexible, responsive, and cost effective.
"We expect Pace to streamline decision-making so we can capture demand faster."
Elliott Hill, Nike
The restructuring arrives as first-quarter sales fall and the turnaround Hill launched continues.
Nike frames Pace as freeing capacity to invest in product innovation, brand narratives, and consumer connections.
That is the core bet. Fewer layers, faster decisions, more money pointed at product rather than overhead.
Hill acknowledged the human cost directly, telling staff news like this creates uncertainty and that he does not take it lightly.
Nike said the financial figures it shared are estimates.
For most employees, the memo said, the immediate work stays the same.
For shareholders, the coming years will show whether the leaner structure can support Nike's broader turnaround as the savings begin to arrive.
