Nike has announced an overhaul of its operating model through a programme it calls Pace, with Chief Executive Elliott Hill telling employees it will result in fewer roles as the sportswear group continues its turnaround amid falling sales.
Nike says Pace is designed to accelerate and scale its Sport Offense strategy, improve productivity and create more capacity to invest in product innovation, brand narratives and consumer connections. The programme includes and builds on the cost realignment plan the company announced in March 2026.
Hill said that while it was currently unclear how many positions would be affected by the restructure, the process would being next year, in a company-published employee memo from 1 October.
Nike projects cumulative savings from the Pace programme of approximately $2.5 billion by fiscal 2031, excluding restructuring charges and any future reinvestment. However the company noted that actual savings, charges and future cash expenditure could materially differ from its estimates.
Changes to Nike’s operating model
As part of the Pace programme Nike will focus on supply-chain modernisation, which will see the improvements made to flexibility, responsiveness, speed and service, while supporting profitability.
The company further plans to consolidate its current four geographies into three from fiscal 2028: the Americas, combining North and Latin America; APGC, covering Asia Pacific and Greater China; and EMEA, which will retain its current operating arrangement. Singapore will be the base for APGC leadership, while some roles now supporting the region from Beaverton will move closer to its markets.
Nike says the geographic changes are intended to move decision-making, accountability and resources nearer to the markets. The company is also establishing a campus in Bengaluru, India, to develop enterprise capabilities across its Nike, Jordan Brand and Converse labels.
Hill said in Nike’s first-quarter results statement: “The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE. We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we’re taking deliberate actions to strengthen those businesses the right way for the long-term.”
Savings target and sales pressure
The news comes amid Nike announcing falling revenue in its first quarter of 2027. Revenue fell 4% year-on-year to $11.2 billion, while Nike Direct sales declined 8%, including a 13% fall in digital revenue, while Greater China revenue dropped 26% on a currency-neutral basis.
Dave Denton, Executive Vice President and Chief Financial Officer at Nike said first quarter 2027 results were “consistent with our expectations, supported by improved gross margin and disciplined cost management.” He added: “As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline.”
The results follow Nike reporting flat fiscal 2026 revenues of $46.4 billion (£34.8 billion), although it did see a 1% increase in gross profit to $19.9 billion (£14.9 billion) for the year ended 31 May 2026.
Hill framed the FY26 results as part of the company’s foundation-laying year. “We took decisive actions to strengthen the foundation of Nike and reposition our business for long-term growth,” he said. “While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential.”