Story perspectives

Nike’s “Pace” plan cuts jobs, targets $2.5B savings

By Drooid · Oct 2, 2026, 2:33 PM UTC · How we work

Summary

Story summary

Nike announced the “Pace” restructuring that will cut jobs and reshape regions.
The plan targets $2.5 billion savings by 2031, including $1 billion in employee-cost reductions with cuts starting 2027.
Nike expects fiscal 2027 revenue to decline high-single-digit after Q1 fell 4% to $11.2 billion.
Greater China revenue plunged 26% YoY, marking the ninth consecutive quarterly decline.
Shares dropped 8.7% after-hours and about 10.36% pre-market, leaving a 45% loss year-to-date.

History

Historical Context

In April 1993 IBM appointed outsider Lou Gerstner as CEO and announced an $8.1 billion loss, the biggest U.S. corporate loss at the time. He cut the workforce to roughly 220,000 employees and forced major cost cuts that restored profitability by 1995. Nike’s 2024 “Pace” overhaul draws on that same playbook, using large-scale cuts to stabilize earnings amid a sales slump.

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Story summary

Nike announced the “Pace” restructuring that will cut jobs and reshape regions.
The plan targets $2.5 billion savings by 2031, including $1 billion in employee-cost reductions with cuts starting 2027.
Nike expects fiscal 2027 revenue to decline high-single-digit after Q1 fell 4% to $11.2 billion.
Greater China revenue plunged 26% YoY, marking the ninth consecutive quarterly decline.
Shares dropped 8.7% after-hours and about 10.36% pre-market, leaving a 45% loss year-to-date.

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