Nike Plans Workforce Reduction Under Restructuring Programme Targeting $2.5 Billion in Savings

Nike is planning to reduce its workforce as part of a broader restructuring programme designed to generate approximately $2.5 billion in cumulative savings through fiscal 2031. The move comes as the sportswear company continues efforts to streamline operations and improve business performance.

The company has not announced how many jobs will be affected. Under its new Pace operating model, Nike expects to change the size and structure of its workforce, eliminate overlapping responsibilities and redirect resources towards key business priorities.

Nike President and CEO Elliott Hill said the restructuring would involve strengthening capabilities in selected areas while removing duplicated roles in others. The changes are expected to reduce the company’s overall workforce over time.

Nike Expects Most Savings in Fiscal 2029 and 2030

The Pace operating model builds on Nike’s cost realignment plan announced in March 2026. The company expects to realise most of the targeted $2.5 billion in savings during fiscal 2029 and fiscal 2030, with the programme extending through fiscal 2031.

Nike estimates that the restructuring will result in approximately $1 billion in pre-tax charges through fiscal 2031, primarily related to employee costs.

This includes around $300 million in severance charges recognised during fiscal 2026. The company also expects to record approximately $300 million in restructuring charges in fiscal 2027. The final costs may vary depending on local legal and regulatory requirements.

New Operating Model to Streamline Decision-Making

Alongside workforce changes, Nike is seeking to reduce management layers and give local teams greater responsibility for decision-making. The company aims to simplify its organisational structure and improve coordination across business functions.

Nike is also establishing a new campus in Bengaluru, India, where full-time employees will work across multiple functions and support teams globally.

The Bengaluru initiative forms part of the company’s broader organisational changes, although Nike has not disclosed the number of employees who may be affected by the planned workforce reduction.

Implications for HR Leaders

Nike’s restructuring highlights the workforce challenges multinational companies face when pursuing cost savings and organisational simplification.

For HR leaders, the programme raises important considerations around workforce planning, role redesign, employee communication and retention of critical skills. Reducing management layers and eliminating overlapping positions can change reporting structures and responsibilities across teams.

At the same time, organisations undertaking large-scale restructuring need to manage employee transitions carefully, maintain operational continuity and ensure that decisions comply with applicable employment laws.

Nike is expected to provide further details about its restructuring programme and longer-term growth strategy at its Investor Day in November 2026.