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Nike Announces Job Cuts, India Campus Amidst 26% China Sales Drop
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CNBC TV18•02-10-2026, 07:59
Nike Announces Job Cuts, India Campus Amidst 26% China Sales Drop
- •Nike plans job cuts and a new campus in India as part of a restructuring effort under CEO Elliott Hill.
- •The company's sales in China plummeted 26% on a constant-currency basis in the first quarter, contributing to a surprisingly steep drop in full-year revenue forecast.
- •Nike aims to achieve approximately $2.5 billion in savings through fiscal 2031 from the restructuring, with employee notifications beginning in 2027.
- •Analysts suggest Nike's challenges stem from a failure to release enough new, compelling products, leading to increased promotions and discounts.
- •Nike's quarterly sales fell about 4% to $11.21 billion, missing analyst estimates, though gross margin rose to 42.8%.
Key Questions Answered
Sales in China tumbled 26% on a constant-currency basis due to intensive competition from international and domestic rivals, alongside a lack of enough new, compelling products that led to an uptick in promotions and discounts.
Nike is reorganizing into three geographic regions—Americas, Asia Pacific and Greater China, and EMEA—instead of four, and plans to open a new campus in India with strong capabilities and access to talent.
The company does not yet know the exact number of roles that will be cut under the restructuring program, but it will begin notifying employees in 2027.
