Nike continues to cut back: new job losses after sharp decline in China

Now that the recovery is taking longer than expected, Nike is cutting jobs again. The sports giant is streamlining its global structure and aims to achieve $2.5 billion in cost savings by 2031. The ongoing slump in China, in particular, is putting pressure on the turnaround under CEO Elliott Hill.

China “will take time”

Nike expects revenue to decline by a high single-digit percentage in the current fiscal year 2027. That is significantly worse than the decline of about 2% that analysts had predicted on average. In the past quarter, revenue fell 4% to $11.2 billion (€9.95 billion), or 5% on a constant-currency basis. Net income declined 2% to $712 million (€632 million).